Kangean successfully produces gas at 300 mmscfd

PT Energi Mega Persada Tbk (EMP) stated that its Kangean Block had been successfully producing gas at the rate of 300 million standard cubic feet per day (mmscfd) since late May 2012.

The block has three fields, namely Terang, Sirasun and Batur.

As reported earlier, the volume of the gas output has been 100% contracted at the price of US$ 5.15/mmbtu (at well head) with 3% escalation per year to PT Perusahaan Listrik Negara (PLN), Pertagas (Pertamina), and Indogas, and at the price of US$ 4.93 / mmbtu (at well head) with 2.5% escalation per year to Petrokimia Gresik. All of the buyers are located in the East Java region.

?Our company is on track to monetize the abundant gas reserves. Currently, gas constitutes more than 85% of EMP's 586 million barrel of oil equivalent proved and probable reserves. The increased gas production is expected to add value to the shareholders given the country?s favorable gas price trend, high industry?s demand, and its environmentally friendly nature," EMP CEO Imam Agustino said.

Kangean PSC is located in East Java , and is currently operated by Kangean Energy Indonesia Limited, which is 50% owned by EMP, 25% by the Mitsubishi Corporation ( Japan ), and the JAPEX ( Japan ). EMP?s 50% stake in the Kangean PSC translates into certified proved and probable reserves of 2.6 million barrels of oil and 677 billions cubic feet of gas as of December 31, 2011 .

Editing by Benget Besalicto Tnb.