Release: PT Energi Mega Persada subsidiary signs Letters of Understanding with East Java customers

Jakarta ? Tuesday, April 19, 2005 : on Friday, April 15, 2005 , EMP Kangean Ltd. a subsidiary of listed company PT. EnergI Mega Persada Tbk (?ENRG?), and the operator of Kangean PSC, signed Letters of Understanding with PT PJB (a subsidiary of state electricity company, PLN), gas trading company PT. Persada Kriya Dwiguna (Indogas), state oil and gas company Pertamina, and the gas distribution and transportation company, PT Perusahaan Gas Negara (PGN), BP Migas , the upstream oil and gas regulator witnessed and supported the signing. A similar document was signed with the fertilizer manufacturer , Petro Kimia Gresik one week earlier. The Letters of Understanding are an important first step toward the commerzialisation of undeveloped proven gas reserves in the Kangean PSC. The Letters of Understanding highlight the following matters to be addressed in a Heads of Agreement that the suppliers, customers and BP Migas are now fast tracking :

Gas reserves and allocations

Gas specifications

Gas setting price

Payment procedure and security

Take or pay scheme and terms & conditions

Relevant procedure for estimation, allocation, and invoicing.

The Kangean PSC was purchased by PT.Energi Mega Persada through its 100% subsidiary, Energi Mega Pratama Inc from BP in September 2004. ENRG , via its subsidiaries , EMP-Kangean Ltd, and Lapindo Brantas Inc. is the largest gas supplier in the East Java region. The other supplier to the East java market is Kodeco.

ENRG plans to develop the oil and gas fields in the Kangean PSC at a cost of approximately US$450 mfrom year 2005 to 2007, of wich the Terang, Sirasun, Batur gas fields (TSB fields) accounts for approximately US$350- 380 m. The TSB fields are expected to start phased commercial production in 2007, and gas production is expected to plateau from the Kangean Block PSC at between 400 and 500 MMcfd.

PT. Energi Mega Persada is now confident that it will achieve higher well-head gas prices for its new gas development in the Kangean PSC.

For any question related to this release please call Herwin W. Hidayat, Head of Investor Relations on 5290 ? 6260.(end of release)

Release: PT Energi Mega Persada subsidiary signs Letters of Understanding with East Java customers

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