Energi Mega oil and gas production to surge in 2012
Saturday, January 21 2012 - 07:28 AM WIB
Listed oil and gas company PT Energi Mega Persada Tbk expects its oil and gas production to rise to 40,000 barrels of oil equivalent per day (BOEPD) - averaged - in 2012, from 16,100 BOEPD in 2011 or up by 148.4 percent.
The increase is attributed to production contribution from Offshore North West Java (ONWJ) block, which it acquired late last year, and maiden production of two other blocks.
In a presentation to the public on Friday, Energi Mega said it will receive 11,700 BOEPD from ONWJ this year in accordance with its participating interest in the block.
The company also expects additional contribution of 25,000 BOEPD from Kangean Block, beginning second quarter 2012 and Bentu Block around 5,000 BOEPD in the fourth quarter.
Imam P Agustino, President Director of Energi Mega, told reporters Friday that the average production in January already reached 30,000 BOEPD, almost double than average production in 2011 at 16,100 BOEPD.
He said oil and gas production this year will gradually increase to reach a peak production of 60,800 BOEPD at the end of this year.
Imam Agustino said Energi Mega expects oil and gas production to further increase by 50 percent in 2013.
Oil and gas proven and probable reserves also increased by 9 percent in 2011 from 2010.
In December last year, Energi Mega acquired 36.72 percent of participating interest in the ONWJ Block for US$212 million or $2.4 per BOE. The purchase was financed by loan, the payment of which will be made from the cash flow of ONWJ oil and gas sales over the next three to four years.
The company also said the value of its 10 percent interest in the giant Masela Block, operated by Japan?s giant oil and gas company Inpex Corporation, has increased to US$291 million, compared to US$100 million when it acquired the interest on the block in 2010.
The value increase was assessed by JP Morgan and Mandiri Sekuritas. Both investment house valued the Masela Block at $2.9 billion.
Energi Mega posted net profit of Rp40 billion in the nine months to September 2011, compared to a net loss of Rp150.44 billion in previous year.
The improved performance was supported by a rise in revenues. In the period, the company posted revenues of Rp1.32 trillion, a surge of 59 percent from the same period last year of Rp830.56 billion. Its earnings before interest, tax, depreciation and amortization (EBITDA) surged 203 percent to Rp565.94 billion from Rp186.49 billion in the same period last year.
Imam Agustino expects the company?s sales to rise to Rp1.8 trillion in 2011 and further jumps to Rp4 trillion in 2012 in line with production rise.
Editing by David Mustakim