Energi Mega Persada secures funding for Kangean PSC development

JSX-listed oil and gas company, PT Energi Mega Persada Tbk on Friday reported that its 100% subsidiary, Energi Mega Pratama Inc, the indirect owner of 100% of the working interests in the Kangean PSC, has successfully completed a

US$275m debt funding facility for the development of oil and gas reserves in the Kangean PSC offshore East Java.

The cost of the debt funds is Libor plus 7%.

The company set a target of securing funding in the first half of 2005 to pave the way for the timely development of the Rancak, Ngimbang and East Spur gas reservoirs in the Pagerungan gas complex, as well as the appraisal and development of the Sipanjang Island and JS53A oil fields.

Most importantly, the funding will be used to develop the Terang, Sirasun & Batur gas fields, which together are the single largest undeveloped proven gas reserves in the East Java market.

The funding, arranged by Credit Suisse First Boston, is the largest domestic upstream gas financing in Indonesian since the 1998 economic crisis.(alex)