Medco expands concession in Gulf of Mexico

JSX-listed oil and gas company PT.Medco Energi Internasional said Tuesday that its wholly owned subsidiary Medco Energi US LLC has expanded the lease area in the Gulf of Mexico, U.S.A.

The additional lease area was purchased for US$500,000 from Centaurus Gulf of Mexico, LLC on December 5, 2006, the company said in statement.

The area, known as Brazos Area Block 437, covers a 5,760- acre field in the Gulf of Mexico. The company carries a five-years primary term in which to establish commercially and a perpetual term for the life of production once production is established.

This is the company's fifth U.S. concession in the second half of this year and the fourth in the Brazos area, Medco said.

Medco's U.S. unit bought Brazos Area Blocks 435, 492 and 514 on Oct. 19. The company expects to start drilling in the Brazos blocks next year, it said.

On May 2006, Medco also purchased a 43.75 percent interest in the Mustang Island Block 758 area in Gulf of Mexico, offshore Texas. (denny)