Medco farms in C. Kalimantan gas block

JSX-listed oil and gas firm PT. Medco Energi Internasional Tbk. announced Friday it had acquire 15 percent working interest in Bangkanai Block onshore Central Kalimantan from Mitra Energia Bangkanai for US$3.75 million.

The company said that the deal would be closed when all conditions precedent agreed by both parties had been met.

Elnusa, a subsidiary of Pertamina is the operator of the block with 51 participating interest. Mitra Energi will retain 34 percent working interest in the block.

The block has Karendan gas field, which was discovered in 1982 by previous operator. The field is estimated to contain about 40 billion cubic feet (BCF) of proven gas reserves. The gas reserves have the potential to be increased up to 190 BCF.

Medco Group is currently proposing to construct a gas-fired power plant using the block?s gas.

Medco said that Plan of Development for the block had been submitted to ministry of mines and energy and still waiting for approval. (alex)