Medco acquires 100% interest in U.S producing block

IDX-listed energy firm PT Medco Energi Internasional Tbk. through its wholly owned subsidiary, Medco Energi US LLC (MEUS) has signed an Asset Purchase Agreement (APA) with Houston-based firm Energy Resource Technology GOM, Inc. to acquire a 100% participating interest (83.33% net revenue interest) in Block 316, East Cameron Area, South Addition, OCS-G 23803, Offshore Louisiana, Gulf of Mexico.

The total purchase price is US$18 million, while the acquisition price on a 2P basis is about $1.3/MMBTU, the company said in statement on Friday.

The operator of East Cameron Block 316 is now MEUS, it said.

East Cameron Block 316 covers approximately 5,800 acres and is located 110 miles off the Southwest coast of Louisiana in the US Gulf of Mexico. The block has two wells producing from subsea completions in approximately 200 ft of water. The East Cameron 316 lease is regulated by the US Department of the Inferior through the Minerals Management Service. Production from East Cameron 316 is processed at the East Cameron 318 platform, which is 75% owned by MEUS.

The acquisition will increase MEUS Proved and Probable (2P) reserves and production by approximately 13.9 billion cubic feet (BCF) and 10 million cubic feet per day (MMCFD) respectively. (denny)