Benakat Petroleum to float shares in Feb

Local oil, gas and mining firm PT Benakat Petroleum Energy Tbk will float its shares at the Indonesian Stock Exchange in February this year, according to a company prospectus.

The Company?s main assets is Benakat Barat oil producing field onshore South Sumatra, which is operated by the Company and owned by state oil, gas company PT Pertamina (Persero). The Company has right to operate the field for 15 years. The block was producing Sumatra Light Crude at the rate of slightly below 2,000 BPD.

According to Gaffney, Cline and Associate, the field has oil reserves of 25 million barrels as per July 2008.

Other main assets include a 10,000 hectares coal concession in West Kutai, East Kalimantan operated by its unit PT Delta Samudra. The Company said the mine, which has been granted exploitation license by West Kutai regency administration, has reserves of 45 million tonnes with CV range from 5,011-5,932 kcal/kg.

The Company also has manganese mine in Manggarai, East Nusa Tenggara with reserves of 900,000 tonnes of ore. The Company said it has the potential to produce 120,000 tonnes of ore per year.

The Company said proceed from the IPO would be used to increase production at Benakat Barat field through development and exploration, accelerate exploitation of coal and manganese mines and to acquire new mines and oil, gas concessions.

The company?s President earlier said it would raise up to Rp.500 billion (US$= Rp.9,200) through the IPO. (alex)