Release: EMP reports THP assets start delivering positive results

(Jakarta July 17, 2007)--Indonesian oil and gas company, PT Energi Mega Persada Tbk (EMP) today reported that 3 of its operating assets. Semberah TAC, Korinci Baru PSC, and Gelam TAC, operated through PT Tunas Harapan Perkasa (THP) have started delivering positive results.

 

Following its first gas production from SBT-01 well in May 2007, Semberah TAC just successfully added gas supply from its second well SBT-2A, on June 12, 2007. Total cumulative gas production from its 2 wells currently adds up to 10 mmcfd. The gas is currently sold to PLN Samarinda at US$2.72/mmbtu, which is by contract to be increased annually. In addition to its gas flow, Semberah TAC also produces oil at over 700 bopd from its 4 wells (SBR-5, SBR-6, UKM-4, SBR-8).

 

Korinci Baru PSC first started commissioning its gas supply to PLN Pekanbaru, Riau on September 28, 2006. First continuous gas production to PLN was booked on June 30, 2007. The current gas volume of 6.5 mmcfd is consumed by PLN (using Riau Power’s gas turbine). Once the PLN’s gas turbine starts functioning, the gas production is expected to increase up to 15 mmcfd. Currently the gas is flown from Baru-5, Baru-6, and Baru-4 wells and is sold at the price of US$2.65/mmbtu.

 

Another positive news was recorded by Gelam TAC. The block just completed its 3-D seismic which covered a total working area of 83 square kilometers. The seismic results are useful in minimizing drilling related risks, confirming the existing certified reserves and resources, as well as identifying new prospects within the block’s working area. Currently Gelam TAC produces oil at around 350 bopd from 3 wells (SG-9, SG-11/ST, SG-12/ST).

 

EMP completed the acquisition transaction of THP in January 2006. The transaction enterprise value was US$309 Min, translating into a competitive purchase price of US$1.75/BOE (2P reserve & contingent resource). (end of release)