Energi Mega Persada set to take over five oil blocks

Publicly listed oil company PT Energi Mega Persada will issue rights shares to raise fresh funds to finance the company's plan to take over five gas fields owned by PT Tunas Harapan Perkasa (THP).

The rights issue will be launched at the end of December after it receives an approval during an extra ordinary shareholders' meeting to be held on Dec. 22. The rights shares which will be sold to existing shareholders will be priced at Rp 770 per share.

"From the limited offering we hope we will be able to raise Rp 3.78 trillion," said Herwin W. Hidayat, EMP's vice president for capital market affairs. "The company will use about Rp 2.95 trillion of the total funds to acquire 99 percent shares of PT Tunas Harapan Perkasa which operates five gas fields," he said.

The remaining Rp 800 billion will be used to support the operation of the five oil fields, he added.

The five oil fields operated by PT Tunas Harapan include Semberah TAC, Sungai Gelam TAC, Bentu PSC, Korinci PSC, Korinci Baru PSC, and Gerbang PSC Job. "Gerbang, Gelam and Semberah have begun production with a capacity of 1,000 barrels per day," he said.(Godang)