Medco Energi completes sale of Medco Tunisia

PT Medco Energi Internasional Tbk through its wholly owned subsidiary, Medco Tunisia Holding Ltd, has completed the sales of the entire issued share capital of Medco Tunisia Anaguid Limited to OMV (Tunesien) Production GmbH.

The total sales value of the shares of Medco Anaguid is US$58 million.

After taken into consideration of the 10 percent deposit and the adjustment amount upon cash call received up to the end of October 2011, the company will receive a total payment of US$50.5 million from OMV on October 28, 2011.

Medco Tunisia signed Shares Sale Purchase Agreement with OMV on September 14, 2011.

The sales of Medco Anaguid shares resulted the transfer of the entire 40 percent participating interest in Anaguid Exploration Permit and 20 percent participating interest in Dorra Concession of Medco Energi in Tunisia to OMV effective since date of October 27.

Even though DeGolyer McNaughton certified the proved and probable gross reserves (2P reserves) of Anaguid Block at 1.5 MMBOE in 2010, the company did not book the reserves of Anaguid Block. Thus, the sales of the whole shares of Medco Anaguid will not impact the total 2P reserves of Medco Energi at the end of year 2011.

Medco Energi said the sales of shares in Medco Anaguid will result a slight decline of the company?s equity and add cash generated from divestment at the end of year 2011. (romel)