Medco, IPR settle dispute on E. Java block

JSX-listed energy firm Medco Energi Internasional Tbk. announced Tuesday it had reached out of court agreement with Canadian firm Indo-Pacific Resources (Java) Limited (IPR) and its shareholder, Fortune Oil and Gas Inc. over dispute regarding stake in Bawean PSC in East Java.

Under the The Minutes of Settlement, said Medco, IPR will transfer 30 percent working interest in Bawean to Camar Resources Canada Inc, which is controlled by Medco.

Once BP MIGAS approves such transfer, the Working Interest holders of Bawean block would be: Camar Resources Canada Inc. - 35% (Operator); and Camar Bawean Petroleum Ltd. - 65%, said Medco.

Medco and IPR had been locked in legal battle after IPR and Fortune filed lawsuit against CRC and Medco?s subsidiary Medco International Ventures Limited in a Canadian court, objecting the dilution of IPR's working interest exercised by CRC.

Medco said the block had proven and probable reserves of 14.72MMBO. Camar field began production on January 2001 and had been stopped since August 2004 due to the absence of storage tanker at that site. Medco said average oil production in 2004 was 800 BPD. (alex)