EMP completes right issue, blocks acquisition

Publicly listed oil and gas firm PT Energi Mega Persada Tbk (EMP) announced Monday the completion of its recent rights issue to raise as much as Rp 3.78 trillion (US$=Rp.9,300) and the acquisition of PT Tunas Harapan Perkasa (THP), a company that operates five oil and gas blocks.

?The majority of the funds raised in the rights issue will be used to acquire the shares of THP and receivables whilst the remaining funds are being employed to assist finance the development of the enlarged ENRG (EMP) portfolio,? Chris Newton, CEO of EMP said in a statement.

According to the statement, out of the 4.9 billion shares issued, 1.25 billion shares were absorbed by the public, whilst the remaining 3.65 billion shares were taken up by PT Brantas Indonesia and PT Kondur Indonesia. Consequently, after the completion of the rights issue process, the public?s ownership in EMP is 31.5 percent, while the founding shareholders hold 68.5 percent.

The statement also said the acquisition of THP would add another 103 million barrels of oil equivalent?s (mmboe) of 2P reserves, and 87 mmboe?s of assessed contingent resources. This adds to EMP?s existing 2P reserve base of 365 mmboe in its three existing producing blocks (Malacca Strait PSC, Brantas PSC, Kangean PSC).

THP through its five subsidiaries, namely: Kalila (Bentu) LId, Kalila (Korinci Baru) Ltd, PT Insani Mitra Getam, PT Semberani Persada Oil and Costa International Group Ltd, owns working interests and is the operator of the Bentu PSC (Bentu), Korinci-Baru PSC (Korinci). Sungai Gelam TAC (Gelam), Semberah TAC (Semco) and the Gebang Block PSC (Gebang), respectively. THP owns a 100% working interest in four of the blocks it operates, with a 50% interest in the Gebang block through a Joint Operating Body (JOB) with state oil and gas company Pertamina.

In total, three out of the five blocks owned by THP have a combined production rate of 4.1 million cubic feet per day and 990 barrels of oil per day. (Robert)