Medco acquires E. Kalimantan Sembakung TAC

Publicly listed oil and gas firm PT Medco Energi Internasional Tbk announced Friday it had purchased 100 percent shares of Perkasa Equatorial Ltd (PESL), the concession holder of Sembakung block in East Kalimantan, from Mauritius-based Synergy Petroleum Limited for US$ 29.7 million.

?The agreed purchase price is US$ 29,722,800.70, which reflects adjustment of working capital in the total of US$ 676,644.84 and share of production bonus,? Medco said in a statement, adding that it will also pay additional amount of US$ 2.02 million for advance payment of inter-company between PESL and Synergy.

PESL has 100 percent interest in Sembakung Technical Assistance Contract block. The block is located in Simenggaris and adjacent to Tarakan blocks, which are also Medco?s working area in East Kalimantan. The Sembakung contract will be expired on December 21, 2013.

According to the statement, the Proved and Probable (2P) oil reserves from Sembakung block as of January 1, 2005 is estimated to be around 12.6 million barrel (MMBO) with the average production rate of 5,000 barrel of oil per day (BOPD) for the period ended June 30, 2005

?The purchasing shares of PESL or the acquisition of Sembakung block is in line with the Company?s strategy to replace and add oil and gas reserves through acquisition of new oil and gas block,? Medco added. (robert)