Release: MedcoEnergi?s oil reserves in Libya increases

( Jakarta, August 2, 2010) - PT Medco Energi Intemasional Tbk (the ?Company? or ?MedcoEnergi?) is pleased to announce the new reserves discovery from 01-47/02 exploration well which recently drilled by its wholly owned subsidiary and Operator of the oil and gas area in Libya, Area 47, Medco International Ventures Ltd. (altogether called ?MedcoEnergi?).

The drilling of 01-47/02 exploration well was one of the realizations of MedcoEnergi?s commitment in executing the approved work program following to the granting of 1 year Area 47 exploration period from the Great Socialist People Libyan Arab Jamahiriya ? General People?s Committee (?GPC?) which became effective in April 1, 2010.

The 01-0470/2 well was drilled to test reserve potential in the Memouniat and Top Lower Acacus Formations, located in a structure to the NW of NI-47/02. The well was spud on May 23, 2010 and drilled, using Ensign-28 rig, to a total depth of 10,700 feet.

The well was completed using workover rig KCA-32 and formation testing began on July 2, 2010. The Memouniat Formation flowed at 1,639 bopd of 45?API gravity crude oil and 2.01 mmscfd, and using 28/64 inch choke and a flow rate of 2,066 bopd and 2.36 mmscfd on a 32/64 inch choke. Meanwhile, a test on the Top Lower Acacus formation resulted in a flow rate of 1388 bopd of 38?API gravity crude and 0.55 mmscfd on a 28/64? choke, and flow rates increased to 1809 bopd and 0.602 mmscfd when the choke size was increased to 32/64 inch.

Previously, the L1-47/02 well tested at 3,952 bopd flow rate and 2.74 mmscfd using a 28/64 inch choke from the Lower Acacus Formation. This presented a significant discovery because L1-47/A2 is located on the same structure as the A structure, and will enhance the reserve size of the first commerciality application in Area 47

Meanwhile, the N1-047/02 well, located in the northern part of Area 47 was designed to prove hydrocarbon reserves potential at the Memouniat and Top Lower Acacus formations. Formation testing of both intervals has proven the play concept. Tests resulted in 1,790 bopd and 2.3 mmscfd using a 28/64 inch choke from the Memouniat formation, while tests from the Top Lower Acacus resulted in 1,980 bopd flow rate. This represented a significant discovery, and further enhances the exploration potential for Lower Acacus and Memouniat formations to contain large oil reserves in the northern part of Area 47.

This discovery represents the fifteenth discovery of the exploration wells in Area 47 since exploration program began in September 2006. In total, the Company has drilled 22 wells consisting of 18 exploration wells and 4 appraisal wells. 15 out of the 18 exploration wells become discovery wells. (end of release)