Sugih Energy plans rights issue

IDX-listed oil and gas firm PT Sugih Energy Tbk plans to launch rights issue in September or October this year in a bid to raise funds primarily to refinance maturing debts, Bisnis Indonesia reported on Saturday.

The paper quoted Sugih President Director Riyanto Soewarno as saying that the company is currently reviewing the rights issue plan.

As of late last year, Sugih shareholders include Golden Hill Energy Fund (11.54%), Credit Suisse AG SG Trust (6.49%), PT Asabri (5.56%), and the public (76.41%).

Part of the proceeds will also be used to finance working capital.

The company has allocated capital expenditure of US$33 million, higher than $25 million last year.

The paper said that Sugih will allocate $24 million of the planned capex to finance the drilling of three oil and gas wells, $3 million to develop pipelines, and the remainder for maintenance of wells.

Sugih is scheduled to start production at the Lemang block this month, with initial oil production target of 4,000 barrels per day.

Sugih last year booked a net loss of $38.34 million. Riyanto said that net loss this year is expected to shrink on improving oil price outlook. (*)