Release: EMP secured FPU facilities to start gas production from Terang, Sirasun, Batur gas fields

(Jakarta, 16 July 2010)--Today, PT Energi Mega Persada Tbk (EMP) reported that a Floating Production Unit (commonly referred to as ?FPU?) has been secured through a tender process, to facilitate gas production from Terang, Sirasun and Batur gas fields (?TSB?) of the Kangean PSC Block.

EMP through its subsidiaries, has an effective 50% participating interest in the Kangean PSC Block, with Mitsubishi Corporation and Japan Petroleum Exploration Co. Ltd. which respectively owns 25% of participating.

Kangean Energy Indonesia Limited as the Operator of the Kangean PSC Btock has entered into an agreement with the Consortium of PT Energy Consulting Indonesia, BW Offshore, and PT Pelayaran Trans Parau Sorat to lease the FPU facilities for a period of 14 years. The leased FPU intended to facilitate gas production from the TSB gas fields beginning in late 2011 / early 2012.

The TSB gas fields are expected to commence gas production at a rate of 300 million cubic feet of gas per day. The FPU facilities can process up to 340 million cubic feet per day of natural gas.

The gas will be delivered from the FPU through the existing 28? subsea pipeline extending some 350 km from the tie in point to the East Java gas receiving facilities and distributed to various gas buyers in East Java. The TSB fields gas supply is expected to meet the future fuel requirement market for generating electricity, industries, and as the fertilizer plant?s feed stock. (end of release)