Medco focuses on acquisition of producing oil, gas blocks

JSX-listed oil and gas company Medco Energi International Tbk. said Monday the company was aiming to acquire oil, gas blocks that are producing, but still have upside exploration potential.

?What we are looking to acquire is producing oil blocks that could have immediate effect on our cash flow. That would enable us to service our long-term debt without sacrificing profitability,? senior corporate communication head Thendri Supriatno said.

The company had just launched successful US$250 million yankee bond that are 400 percent oversubscribed, increasing the company?s long-term debt to $360 million.

Thendri said the company is currently in talks with some companies to acquire interest in some oil and gas blocks and hoped to acquire interest in five blocks this year and another five next year. Some of the fund raised will be used to finance the acquisition, he said. He, however, declined to say the companies Medco were now in talk with, but saying the company is now reviewing date room on several oil, gas blocks.

Medco, one the country?s top oil producers, booked a net profit of $84.14 million last year, up from $78.19 million in 2001. (alex)