Release: EMP sets highest gas price through its Semberah TAC asset new gas flow to VICO
Monday, July 28 2008 - 02:20 AM WIB
(28 July 2008)--Indonesian publicly listed oil and gas company, PT Energi Mega Persada Tbk (EMP) today announced that one of its major assets, Semberah TAC, has just initiated gas production of 10 millions cubic feet per day to the Virginia Indonesia Co., Llc (VICO) in Kalimantan on July 25, 2008. VICO requires the gas for its plant?s fuel purpose. The daily production is expected to go up to 15 million cubic feet gas per day from the 3 producing wafts within the Semberah Gas Field.
The total contracted volume in the Gas Sales & Purchase Agreement is around 3.65 Billions Cubic feet over 1 year period. The gas selling price is set at US$5.9/mmbtu and will be renegotiated upon the contract extension.
In addition to the gas production to VICO, Semberah TAC supplies around 10 millions cubic feet gas per day to PLN Tanjung Batu from the Sambutan Gas Field?s 2 wells. Semberah TACs development wells also produces over 1,000 barrels of oil per day.
EMP through its subsidiaries controls 100% stake in Semberah TAC. These improved production performance and significantly higher gas price are expected to have positive impacts on EMP?s cash flow going forward. (end of release)