Release: EMP reports H1 results

(Jakarta , July 30, 2010)--PT Energi Mega Persada Tbk today reported its first half 2010 financial end operational results. Overall, ENRG achieved an 82% growth in Earnings Before Interest Depreciation and Amortization (EBITDA) in the 1st semester 2010. The significant EBITDA increase is due to higher realized oil price and lower production cost. In the first half of 2010, the Company?s realized oil price increased by 53% to US$79.4 per barrel. At the same time, the Company continues to drill lower cost development and work over wells which resulted in a 26% drop in Its Costs of Goods Sold, Consequently, ENRG?s EBITDA almost doubled in the first semester of 2010 to Rp 144 billion.

ENRG?s daily oil end gas production rate volumes went down by 18% and 30% respectively, mainly driven by the tack of dri1ling activities in the previous year. Mr. Imam Agustino, ENRG?s CEO, said, ?We experienced oil and gas production decline in the first half of 2010, and this was due to extremely low drilling activities in 2009. We only drilled 1 development well lest year as we tightened up our budget due to the low oil price environment whilst the company was, at that time, relatively highly leveraged.

Mr Agustino also said, ?Now that the rights Issue process was completed in the first quarter 2010, and its proceed is being used to reduce the loan, acquire the 10% stake in Mesala PSC block, end fund The Company?s capital expenditures and working capital requirements, we look forward to healthier balance sheet and normalized drilling activities toward the end of this year.

Earlier this year, ENRG used pails of the rights issue proceed to repay it s loan. Consequently, the company?s debt to equity ratio improved to 0.56% and its financing charge was cut by half. Completion of the 10% slake acquisition of Masela PSC, is expected to increase ENRG?s 2P reserves by 150% soon.

Mr. Agustino added, ?We expect that late this year, our Kangean PSC block?s Pagerungan Utara field (East Java) and Bantu block?s Segat field (Riau, Sumatra) to deliver oil and gas productions of 5,000 barrel per day and 20 million cubic feet gas per day respectively. On top of that, our Kangean PCS?s TSR field (East Java) is on track to flow 300 million cubic feet of gas per day late in 2011.?

In May 2010, ENRG secured a Floating Production Storage Offloading to facilitate oil production from Its Kangean block?s Pagerungan Utara field. Earlier this month, ENRG also leased a Floating Production Unit to develop and commence first gas from Its Kangean PSC block?s TSR field. (end of release)