Release: MedcoEnergi discovers additional oil at N1-47/02 Well, Libya

Jakarta, July 20, 2010--Following to the success of testing the L1-47/02 well in Area 47, Libya, PT Medco Energi Internasional Tbk (Company or MedcoEnergi) is pleased to confirm an additional oil discovery in Area 47, Libya, the N1-47/02 exploration well. The discovery is the twelfth oil and gas discovery in Area 47 since the exploration drilling activities began in September 2006.

N1 well was located to test a new and developing trend in the Memouniat and Top Lower Acacus zones. This discovery will enhance the overall and ultimate potential of Area 47, Libya. The well is located approximately 25 Km to the North East of the recently tested L1 discovery.

The N1-047/02 well was spud on May 15, 2009 using the Ensign 28 rig. The rig was released on June 20, 2009. The well testing was delayed due to the sale of shares of the former operator of the Area 47, Verenex Energy.

The Company entered and began to test the well using KCA 32 rig on June 10, 2010. The test was completed earlier than the expected schedule of July 1, 2010.

The Drill Stem Test (DST) #1 of the Memouniat Formation flowed 1,790 Barrel of Oil Per Day (BOPD) of 44 API Crude and 2.3 million cubic feet per day (mmcfd) of gas through a 28/64? choke.

The DST #2 tested the Top Lower Acacus sand and achieved a flow rate through a 32/64? choke of 1,980 BOPD of 41 API crude with minor gas.

As of today, there were 21 wells drilled in the Area 47, which consisted of 17 exploration and 4 appraisal wells. Out of 17 exploration wells drilled, 12 wells have been declared as discoveries, 2 have been tested and are awaiting discovery status from the National Oil Company (NOC), 2 are awaiting testing and one has been abandoned.

The testing of N1-47/02 well was one of the Company?s 2010 work program which includes completing and testing of the three previously drilled wells. (end of release)