Release: Medco Energi: Langsa TAC H-4 delineation well flowed oil

Jakarta, September 16, 2004 -- On August 26, 2004 Medco Moeco Langsa Ltd. (MML), a joint venture company 50 percent owned by PT Medco Energi Internasional Tbk (Medco Energi), tested H-4 well during flow back 4500 BOPD (barrels of oil per day) of 41.7 degrees API oil with 1? choke from the Mid Miocene, Malacca reefal build-up carbonate at depth of 5081 feet subsea.

H-4 well is located near the eastern margin of North Sumatra Basin and drilled as the development well after H-1, 2, 3 delineation wells drilled by Mobil Oil during the years 1979-1983.

The H-4 well, which is located in the H field, is planned to be connected to FPSO and start production in September 2004. One other well in the L field, L-3, is being drilled at the moment.

Medco Energi, in a 50: 50 joint arrangement with Mitsui Oil Exploration Co., Ltd. (MOECO), a Japanese corporation, acquired 70 percent working interest of Langsa offshore under TAC (Technical Assistance Contract) with Pertamina in December 2003.

This Langsa TAC is a crude oil producing field, located in Mallaca Strait, 55 km offshore of East Aceh. The block covers an acreage of 77 sq km, with water depth of 95 m. It has potential hydrocarbon reserves, and estimated that its 1P oil reserves is 4.5 MMBO (million barrel oil) and 2P oil reserves is 7.0 MMBO. (end of release)