Update-Energi Mega announces rights issue to acquire a portfolio of oil and gas assets
Friday, October 28 2005 - 07:31 AM WIB
THP is a holding company with fully owned subsidiaries with interest in various oil and gas production sharing and technical assistance contracts in Indonesia. The company has some US$ 25.0 million in third party debt and total enterprise value of the deal is therefore US$ 309 million.
Total combined proven and probable reserves or the THP assets have bean certified by internationally accredited reservoir consultants to be 435 bcf of gas and 31 mmbbls of crude oil. In addition to these reserves, the assets also contain a significant amount of certified possible reserves and contingent gas resources to 866 bcf. Possible oil reserves are certified at 111 mmbbls.
The acquisition is to be fully funded with a significant portion of the proceeds from an equity rights issue. The Company plans to issue 4,909,368,195 shares at Rp 770 in the Rights Offering raising Rp 3.78 trillion.
THP through its five subsidiaries, namely: Kalila (Bentu) LId, Kalila (Korinci Baru) Ltd. PT Insani Mitra Getam. PT Semberani Persada Oil and Costa International Group Ltd. owns working interests and is the operator of the Bentu PSC (Bentu), Korinci-Baru PSC (Korinci). Sungai Gelam TAC (Gelam), Semberah TAC (Semco) and the Gebang Block PSC (Gebang), respectively. THP owns a 100% working interest in four of the blocks it operates, with a 50% interest in the Gebang block through a Joint Operating Body (JOB) with state oil and gas company Pertamina. THPs? combined contract area spans a region of some 5,800 square kilometres across tour different areas of Indonesia. All blocks are strategically located close to regional capital cities.
Currently, THP produces some 4.1 mmcfd of natural gas from the Gebang block and 990 bopd of crude oil from the Gelam and Semberah blocks. The Acquisition is expected to boost ENRG?s certified proven and probable reserves by 32% .
As part of the acquisition, full reserve certification was undertaken on all of THP?s working interests. The following table highlights the breakdown of the certified reserves and contigent resources for each asset.
Currently, PT Energi Mega Persada Tbk, through various subsidiaries, operates 3 producing blocks with proven oil and gas reserves. Kondur Petroleum S.A operates the Malacca Strait PSC an offshore Sumatera and combined with another subsidiary, ITA, the company controls a 60.49% working interest. The Brantas Block, which is located in East Java, is operated by 100% subsidiary Lapindo Brantas, Inc, which owns a 50% working interest, The company is the operator and it is the owner of a 100% working interest in the Kangean PSC in East Java. (godang)
Certified Reserves and Assessed Resources?
Block |
Cert* |
Gas Reserves (bcf) |
Oil (mmbo) | ||||||
1P
|
2P
|
3P
|
Cont.Res.**
|
1P
|
2P
|
3P
|
Cont.Res.**
| ||
Bentu
|
MHA
|
142
|
290
|
456
|
0
|
0
|
0
|
0
|
0
|
Korinci
|
MHA
|
16
|
76
|
105
|
0
|
0
|
0
|
0
|
0
|
Gelam
|
GCA
|
0
|
0
|
0
|
396
|
0
|
9
|
58
|
0
|
Semberah
|
GCA
|
24
|
64
|
179
|
0
|
6
|
22
|
52
|
0
|
Gebang
|
GCA
|
0
|
5
|
41
|
123
|
0
|
0
|
1
|
0
|
Total
|
?
|
182
|
435
|
781
|
519
|
6
|
31
|
111
|
0
|
(*)All reserves certified by independent reserve engineers Malkewicz Hueni Associates("MHA")
or Gallnoy Cline & Associates ("GCA") as of 30 June 2005, except Semberah which is as of April 2004
(**)Best estimate
Asset Summary
Contract Area |
Type |
Location |
Operator |
Contract Area (km2) |
Working Interest |
Primary Resource Type |
Status |
Bentu |
PSC |
Riau Province |
Kalila (Bentu) Operator Pty Ltd |
3,450.0 |
100% |
Gas |
Development first gas 2007 |
Korinchi-Baru |
PSC |
Riau Province |
Kalila (Korinchi) Operator Pty Ltd |
1,263.0 |
100% |
Gas |
Development first gas Q4 2005 |
Sungai Gelam |
PSC |
Jambi,Sumatra |
PT Insani Mitra Gelam |
55.0 |
100% |
Oil& Gas |
Oil Purchasing plus New Developments |
Semberah |
PSC |
East Kalimantan |
PT Sembrani Persada |
40.5 |
100% |
Oil& Gas |
Oil Producing plus New Developments |
Gebang Block |
PSC |
North Sumatra |
Costa International Group |
980.2 |
50% |
Gas |
Gas Producing plus New Developments |