Medco completes Papua, N. Sumatra farm in deal

PT Medco Energi International Tbk through its subsidiary Medco International Venture Limited on Wednesday signed a farm-in agreement to acquired up to 80 percent of working interest and operatorship from Rombebai production sharing contract (PSC) from Ramu International LLC.

Rombebai Block is located onshore northeast Papua province. It is currently an exploration Block with significant gas accumulation. The Block is 11,590 square km in size, with PSC frontier type of contract.

Medco CEO Hilmy Panigoro said it will pay 80 percent of working interest on the block by drilling two exploration well. The wells is schedule to be drilled in second quarter of 2003.

Helmy estimated cost of drilling the two wells is US$10 million.

?This acquisition marks a milestone in Medco that for the first time the company enters Papua to explore and develop energy in this region,? said Hilmy

Hilmy said gas potential in the block could reach up to 5 trillion cubic feet.

Meanwhile Medco also signed a financial closing of acquiring 100 percent shares of EEX Asahan Limited.

EEX Asahan is wholly subsidiary EEX International Inc, a Houston based independent oil and gas company.

EEX Asahan has 15 percent of working interest in the Asahan PSC-JOB, which is approximately 4200 square km in size and is located offshore North Sumatra.

Australian oil company, Matrix Oil NL is the operator of the Block. (alex/godang)