Sugih Energy to acquire two oil blocks

PT Sugih Energy Tbk is conducting a due diligence on two oil and gas blocks as part of its plan to acquire the blocks that are already in production.

The company refused to give any further details of the blocks. It only stated that both are located in southern and central Sumatra.

?We?re currently conducting due diligence on the two blocks. Both have been in production and located in southern and central Sumatra. We hope to finalize the due diligence in the near future,? Sugih Energy President Director Andhika Anindyaguna was quoted by Investor Daily in Jakarta on Tuesday.

He said that the acquisitions were part of its strategy to boost the company?s growth and to make it as an integrated energy company in the future.

Currently, Sugih Energy has already had two oil and gas blocks, namely, Lemang production sharing contract (PSC) and Kalyani PSC.

In Lemang Block, it is now conducting the drilling of Selong-1 well, which is expected to be completed later this month. ?We?ve completed the drilling of Selong-1 well at a depth of 2,000 meters that had led to an indication of oil and gas. We hope in two weeks we?ll finalize its testing and production will start during the third quarter of 2013,? he said.

Andhika noted that Sugih Energy had allocated its capital expenditure (capex) at about Rp437 billion (US$46 million) to finance drillings of exploration wells. (*)