Medco acquires 60 percent interest in Lematang Block

Publicly listed oil firm PT Medco Energi International Tbk announced on Tuesday it had completed a closing deal to acquire 100 percent of Petroleum Development Associates Asia LLC (PDA Labuan) for US$6.25 million.

Medco said the purchase give it PDA Labuan's 60 percent working interest in the Lematang Block, in South Sumatra.

The Lematang block comprises the Harimau oil producing field, an undeveloped gas field and a profitable gas 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 gas and 5,250 barrel oil.

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

The company said the acquisition is part of its strategy to replace and increase oil and gas reserves. ?This acquisition also demonstrated our commitment to support our long-term plan to a major gas producer in Asia region,? the company added.

Medco is listed on the Jakarta Stock Exchange. (robert)