Energi Mega signs contract to sell gas to PLN

Indonesia-listed oil, gas firm PT Energi Mega Persada Tbk (?ENRG?) announced Wednesday that its Gelam TAC block in Jambi, Sumatera has just signed the Gas Sales Purchase Agreement with PT Perusahaan Listrik Negara (?PLN?), The contracted gas volume within the agreement is 4,990 BBTU with the contract tenor of 6 years, from May 2011 to May 2017. The Gelam TAC block is expected to commence its first gas delivery to PLN in October 2011 at the production rate of 2.5 million cubic feet per day and at a gas price of US$ 4.9 / MMBTU. The agreement also includes a 3% gas price escalation term on annual basis.

Imam Agustino, the CEO of ENRG. said, ?The signed gas contract at the relatively competitive price shows another milestone achieved by ENRG We expect to gradually increase our realized gas price to above US$ 4 / MMBTU in the next 24 months, This achievement by Gelam TAC block will have positive impact to our operational and financial results going forward.?

ENRG through its subsidiaries own 100% interests in the Gelam TAC block in Jambi, Sumatera. During year 2010, the block produced almost 300 barrels of oil per day. (godang)