EMP announces gas production from Gelam TAC block

IDX-listed oil, gas firm PT Energi Mega Persada Tbk (EMP) reported Thursday that its Gelam TAC block (Gelam) in Jambi, Sumatera is ready to commence gas production of 2.5 millions cubic feet per day to PT Perusahaan Listrik Negara (PLN) by end of this week. The gas is priced at US$ 4.9/MMBTU, and the contracted gas volume within the agreement is 4,990 BBTU with the contract tenor of 6 years. The agreement also includes a 3% gas price escalation term on annual basis.

Imam Agustino, the CEO of EMP, said, ?This gas produced by Gelam is another milestone achieved by EMP. In the next 18 months, we expect to gradually increase our production rate and contracted price. Our Gelam?s achievement, among others, would be reflected in the Company?s year end positive financial and production results.?

EMP through its subsidiaries own 100% working interests in Gelam.(godang)