ENRG prepays loan to Credit Suisse

IDX-listed PT Energi Mega Persada Tbk (ENRG) reported on Tuesday that it used some of the fund derived from the sale of its 10 percent stake in the Masela PSC to fully repay its US$ 200 million loan facility arranged by Credit Suisse, Singapore, prior to its maturity of September 2013.

This leads to the company?s total loans reduction of US$ 200 million and stronger debt to equity ratio of 0.75x, which is down from 1.22x in 2012. After the repayment, ENRG will save up to US$ 25 million in interest cost on annual basis, and that would result in improvement of its future profitability, the company said in a press statement.

ENRG is an upstream oil and gas company which produces around 48,500 barrels of oil equivalent per day throughout the first quarter 2013. Its latest production rate as per 27th June 2013 was at 55,040 barrels of oil equivalent per day. ENRG currently operates and own stakes in some 11 oil, gas, and coal bed methane (CBM) assets in Indonesia.

Editing by Benget Besalicto Tnb.