Medco receives $143 million from Novus assets sale

JSX-listed oil, gas firm PT.Medco Energi Internasional Tbk said Friday it had received US$97.9 million payment from Australian oil firm Santos Limited on December 31,2004 from the sales of 18% interest of Brantas Block PSC in East Java, 6.25% interest of Kakap Block offshore Natuna, 4.75% interest of S.A Cooper Basin and 2.9688% interest of Patchawarra East, both are located in Australia.

The company also reported that it had had signed a Purchase and Sale Agreement to sell its 30 percent working interest at Stratton Field, onshore Texas, USA, to Apache Corporation, the operator of the field. For this asset sale, within the same date the company received $45,2 million.

Medco used the proceed from Santos to pay debts to United Overseas Bank (UOB). Up to January 4, 2005, Medco had UOB US$ 150 million out of total debts of $200 million. The $50 million debt balance had been extended to 15-months term.

The whole proceeds from UOB bridging loan facility received at the end of June 2004, had been used by the Company to fund the purchase of 100% Novus Petroleum Limited?s shares, which had been concluded on August 20, 2004.

Medco acquired Australia's Novus in August 2004 for US$245 million through hostile take over. Novus has interest in 13 oil, gas blocks that are located in Indonesia, Australia, Middle East and US. Medco is spinning off the assets and most likely will retain interest in Indonesian gas producing blocks Brantas PSC (32 percent) and Kakap PSC (18.75 percent). (alex)