Medco acquires 10% interest in Lematang PSC from Novus

The Jakarta Stock Exchange listed oil and gas firm PT Medco Energi International Tbk has continued to increase its working interest in Lematang production sharing contract (PSC) by acquiring a 10 percent interest in the block from Australian oil company Novus Petroleum Limited.

?We have completed the acquisition of ten percent working interest in Lematang PSC for US$929,425,? Medco?s corporate secretary Sugiharto said in a statement released Friday.

In October 2002, Medco acquired a 60 percent interest in Lematang PSC from Malaysia?s Petroleum Development Associates (Asia) Ltd for $ 6.26 million.

Following the transaction, Medco holds a 70 percent of working interest in the block, while Swedish?s Lundin Petroleum, Petroleum Development Associates, and Novus hold 15 percent, 10 percent, and 5 percent, respectively.

The Lematang PSC, which is located in South Sumatra, comprises the Harimau oil producing field, an undeveloped gas field and a profitable gas in the Banteng prospect.

The Harimau field gross production is 2.82 million cubic feet per day (MMCFD) and 89 barrels of oil per day (BOPD), or net 0.42 MMCFD and 13 BOPD. Proven net remaining gross reserves are 0.435 BCF of gas and 5,250 barrels of oil.

Medco, through its subsidiary PT Exspan Nusantara, also has been producing oil from the Rambutan and Lagan fields, which lie adjacent to Lematang Block.

?This acquisition is part of our strategy to increase oil and gas reserves in the future,? Sugiharto added. (robert)