EMP eyeing $500m right issue

IDX-listed oil, gas firm PT Energi Mega Persada (EMP) on Wednesday disclosed plan to raise Rp.4.8 trillion or US$500 million through right issue.

The company said in an announcement that proceed from the right issue would be used to pay acquisition of 10 percent working interest in Masela block, Timor Sea to Japanese firm Inpex Corp (US$100 million), to pay company?s debts (US$250 million) and for capital spending and working capital.

The company expects to complete the right issue process by the end of January 2010.

Securities houses PT Danatama Makmur and PT Madani Securities will act as stand-by buyers for unsubscribed issue.

EMP has stake in several oil, gas blocks in Indonesia including Kangean PSC offshore East Java and Malacca Straits PSC in Central Sumatra. (alex)