Release: MedcoEnergi released 15% interest of Asahan PSC to Serica Energy

Jakarta, August 22, 2005 ? On Monday, August 15, 2005, PT Medco Energi Internasional Tbk. (?MedcoEnergi?/the ?Company?) announced that the Company, through its wholly owned subsidiary, PT Medco E&P Asahan (?Medco Asahan?), has signed a Farmout Agreement (?Agreement?) with Asia Petroleum Development (Asahan) Limited, a company incorporated in the British Virgin Island and a wholly owned subsidiary of Serica Energy Corporation, an international oil & gas exploration and production company listed in Toronto Stock Exchange with primary activities in Indonesia, the UK North Sea and Spain (altogether called ?Serica Energy?), to sell and assign its fifteen percent (15%) interest in Asahan Block.

The effective date of the Agreement will be August 1, 2005 and subject to BPMIGAS and the Government of the Republic of Indonesia approval. Serica Energy, as the operator of such block, shall request the consents of BP MIGAS and the Government of the Republic of Indonesia. Once the consent from BPMIGAS is obtained, the Company will receive the payment for such sale.

Asahan block is located in offshore of North Sumatra and covers the acreage of 3,019 square kilometers. MedcoEnergi acquired 15% interests of Asahan block in March 2002 through the acquisition one hundred percent (100%) shares of EEX Asahan Ltd. (end of release)