KrisEnergy launches S$500 million MTN program

By Romel S. Gurky

SGX-listed KrisEnergy Ltd., an independent upstream oil and gas company, announced Monday that it will begin the marketing and sale of a new issuance of notes under the company?s S$500,000,000 medium term note (MTN) program. The notes will be marketed and sold to institutional and/or sophisticated investors.

The Hongkong and Shanghai Banking Corporation Limited and Standard Chartered Bank have been appointed as joint lead managers and joint bookrunners of the notes, KrisEnergy said in a statement.

It said that the net proceeds arising from the issue of notes (after deducting expenses incurred in connection with the issue of the notes) will be used for planned capital expenditures to be incurred in the near term in connection with the development assets of the company and its subsidiaries, which will primarily include G10/48, G11/48, Cambodia Block A and Block A, Aceh, as well as general corporate purposes.

KrisEnergy agreed last month to acquire a 41.67 percent working interest in Block A PSC, in Indonesia?s Aceh province, from Premier Oil Overseas B.V. for a consideration of about US$40 million. Several gas condensate discoveries in the block were expected to go into the development phase after completion of the acquisition.

PT Medco E&P Malaka is the operator of the PSC with a 41.6667 percent working interest while Japex Block A Ltd. holds the remaining 16.6667 percent.

Block A, located onshore Sumatra in the semi-autonomous region of Aceh, covers an area of 1,867 sq km and contains several gas condensate discoveries including the Alur Rambong, Alur Siwah and Julu Rayeu fields, which were approved for development in 2007. First gas from Alur Rambong is anticipated in 2017. The block also contains the Matang gas discovery, which requires further appraisal prior to being developed via tie-back to the initial facilities, and the high-CO2 Kuala Langsa gas discovery.

Editing by Reiner Simanjuntak