PT Medco Energi Internasional Tbk.

Transcription

1 1 December PT Medco Energi Internasional Tbk. STOCK DATA* Market Cap. (bn Rp) : 7,997.9 Highest (12mth) : 3,500 Lowest (12mth) : 1,870 Last Price : 2,400 Free Float : 37.56% *as of 1 December MedcoEnergi Released Working Interests of Anaguid Block in Tunisia. PT Medco Energi Internasional Tbk has completed the sales of its 20% participating interest in the Durra Concession and 40% participating interest in the Anaguid Exploration Permit (prior to Enterprise Tunisienne d Activities Petrolieres or ETAP s 50% back-in) in Tunisia. A Share Sale and Purchase Agreement between the Company s wholly owned subsidiary, Medco Tunisia Holding Ltd (Medco Tunisia), and OMV (Tunesien) Production GmbH, a wholly owned subsidiary of the Austrian oil company, OMV Aktiengesellschaft (OMV) had been signed on September 14, to sell the entire issued shares of Medco Tunisia Anaguid Limited (Medco Anaguid), at the price of US$58 million. Medco Anaguid is the holder of participating interests in Durra Concession and Anaguid Exploration Permit. As a background, MedcoEnergi acquired 40% equity in participating interest of Anaguid Block from Anadarko Tunisia Anaguid Company in Exploration programs in the Anaguid Block have resulted in two hydrocarbon discoveries out of Durra-1 and Mona-1 wells. DeGolyer McNaughton certified those reserves in 2010 at 1.5 MMBOE (Gross 2P). Since the reserves has never been booked by MedcoEnergi, the sales of Medco Anaguid s shares will not impact MedcoEnergi s reserves profile or potential revenues. On the contrary, it shows the Company s new strategy that emphasize its focus in funding and developing their own operated oil and gas working areas. Nevertheless, MedcoEnergi will remain committed in pursuing any available opportunity to invest in other exploration and production of oil and gas area in Tunisia. MedcoEnergi still perceive Tunisia as an attractive country to invest in oil and gas business. PT Medco Energi Internasional Tbk Investor Relations Department The Energy 52nd Floor SCBD Lot 11A Jl. Jendral Sudirman, Jakarta Tel: (62-21) , Fax: (62-21) , investor.relations@medcoenergi.com Website: MedcoEnergi Utilizes Sekayu methane Gas for Electricity. PT Medco Energi Internasional Tbk was finally able to realize the utilization of Coal Bed Methane (CBM) in CBM Sekayu Block into energy for electricity. It was marked with the signing of a Memorandum of Understanding (MoU) for CBM Sekayu Block by Regional Mining and Energy Company (PDPDE) of South Sumatra. The signing was made between the Director of PT Medco CBM Sekayu, Pudjo Suwarno and Managing Director of PDPDE, Caca Isa Saleh on 21 November. It was also witnessed by the new Minister of Energy and Mineral Resources (ESDM) Jero Wacik. In the MoU, it is mentioned that MedcoEnergi will supply the CBM for 5 (five) years period to PDPDE South Sumatra with a constant supply volume of 200 MSCFD. Methane gas will be supplied from the SE-2 CBM wells in CBM Sekayu Block and planned to be utilized in order to meet the electricity

2 needs for local communities around the block. The utilization of methane gas was in parallel with Presidential Decree No. 14 of on the Acceleration of Implementation Program of the National Development Priorities in. As a pioneer in the utilization of CBM, MedcoEnergi has been starting off to a good point where currently the electricity produced from CBM Sekayu was utilized for local use within the gathering station at CBM Sekayu Block located in the district of Musi Banyuasin, South Sumatra. In response to its large amount of methane gas potential, the methane gas from CBM Sekayu Block would be better utilized to meet the electricity needs of local communities. In 2012, MedcoEnergi plans to drill four wells on CBM Sekayu Block in which the Company operates the block in partnership with South Sumatra Energy Inc. (SSE Inc.), with 50% participating interest for each companies. Currently, MedcoEnergi is operating two CBM Production Sharing Contract (PSC) blocks, namely CBM Sekayu Block and CBM Lematang Block. In addition, MedcoEnergi also partnering with Dart Energy who operates CBM Muralim Block, also located in South Sumatra province. MedcoEnergi Divested 51% of its Shares in Medco Power Indonesia. PT Medco Energi International Tbk. has divested 51% of its shares in PT Medco Power Indonesia (MPI) to PT Saratoga Power on 16 December. MPI is MedcoEnergi s subsidiary which operated the electricity power generation business unit while PT Saratoga Power is a subsidiary of Saratoga Capital, a private equity company focusing on growth capital. The acquisition by PT Saratoga Power was also structured that subscription of new shares will going to take place in two phases as specified in the Shares Purchase and Subscription Agreement (SPSA) which was signed on 14 November. Chronological details of the deal are as follow: 1. On 14 November, MedcoEnergi, Saratoga and MPI has signed a Shares Purchase and Subscription Agreement (SPSA) which Saratoga to acquire 51% of issued and outstanding shares of MPI; 2. The purchase of 51% shares of MedcoEnergi based on MPI Shareholders Circular decision dated 16 December (Shareholders Resolution) valued at USD 54,880,000; 3. The subscription of new shares issued in Phase I by MPI in pro rata dated 16 December according to the ownership of each shareholders - Saratoga for 51% (worth USD32,120,000) and MedcoEnergi for 49% (worth USD30,860,392) - by virtue of the Shareholders Resolution; 4. The subscription of new shares issued in Phase II by MPI in pro rata at the latest on March 2012 according to the ownership of each shareholders Saratoga for 51% (worth USD25,000,000) and MedcoEnergi for 49% (worth USD24,019,608). The total amount paid in acquisition of 51% shares and subscription of new shares in MPI by PT Saratoga Power, so far is USD87,000,000. Upon the ef-

3 fective subscription of Phase II by PT Saratoga Power and MedcoEnergi which is expected to be completed entirely on 16 January 2012, the total amount paid by PT Saratoga Power will be USD112,000,000 and the shareholders structure of MPI becomes the following: - PT Saratoga Power 51%; and - PT Medco Energi Internasional Tbk 49%. The entrance of Saratoga as a strategic partner in MPI is one of the Company s strategy in enhancing the growth of its Power Generation business through synergy. The deal also enables the Company to deconsolidate the Financial Statement of MPI at the end of year, thus reducing its debts and decrease its debt to equity ratio at the end of year. Furthermore while still supporting MPI growth through its 49% ownership, MedcoEnergi will be able to focus more of its fund allocation towards E&P activities. MedcoEnergi Obtained Commercialization Approval for Area 47 Libya. PT Medco Energi International Tbk through its wholly owned subsidiary Medco International Ventures Limited - Libya (MIVL), announced that Management Committee (MC) of Area 47 Libya, through the Resolution No: 4- dated 14 December, has decided to issue a Declaration of Commerciality of the structures namely A, D and F located in Area 47, Ghadames Basin, Libya. The Declaration of Commerciality enables the holders of participating interest, MedcoEnergi and the Libyan Investment Authority (LIA), to commence development of those structures, recover all operating costs, and provide a return on investment to the participating interest holders, in accordance with Exploration and Production Sharing Agreement (EPSA) IV, which was signed in March This Declaration of Commerciality entitles MedcoEnergi and LIA to obtain cost recovery amounting to US$ Million based on the audit results that have been performed and approved by the Libyan National Oil Corporation (NOC). This amount represents 98.4% of total exploration costs that have been incurred by MIVL and LIA up to 31 December This achievement demonstrates that MIVL, the Operator, and its partner, LIA, have performed the exploration activities in compliance with the prevailing laws and regulations and applied Good Corporate Governance principles. This Declaration of Commerciality marks the initial stage of the Area 47 development. From these structures, MedcoEnergi and its partners plan to build a production facility with a capacity of 50,000 barrels of oil per day, which is slated for a 36-month completion by The engineering and construction works will commence in 2012 and 2013, respectively. The construction of production facilities in Area 47 will create hundreds of jobs including the construction, operation and maintenance of production facilities. The budget for the construction of production facilities is estimated at approximately US$ 800 Million, which will be funded by NOC, MedcoEnergi and its partner, LIA. Subsequently, the commerciality of other discoveries in sev-

4 eral other structures within Area 47 will be carried out immediately. Furthermore, the Company is committed to carry out several exploration activities, particularly for the completion of B2/02 appraisal well and drilling of the new exploration well, E1/04 in Since 2005, MedcoEnergi and LIA have drilled 26 wells in Area 47, Libya, which consist of 20 exploration wells and 6 appraisal wells. Out of the 20 exploration wells, 18 wells discovered oil reserves, providing an exploration success rate of 90%. Exploration Report This Commerciality is a significant achievement for the Company. Through the Declaration of Commerciality in oil structures A, D and F, which is located in Area 47, Libya, MedcoEnergi will increase its proven reserves (1P). In 2008, based on De Golyer MacNaughton s Certification, the Company declared contingent resources of around 352 MMBOE in Area 47, Libya. This number is not including the latest discoveries made for the past few years. Bengara Block PSC, North East Kalimantan Background Bengara-I Block PSC is located in North East Kalimantan. The block originally awarded to PT Petroner Bengara Energi. PT Medco E&P Bengara has taken over the 100% share by September 27, The company holds 58.33% of Working Interest, while Salamander Energy holds 41.67% of the Bengara-I Block s Working Interest. The PSC is valid until 26 September The Company spudded South Sebuku-2 well in June 17th, and planned to drill a total depth of 4,535 MD/TVD. As of the end of October, the Company drilled to a final total depth of 4,546 MD/TVD. Results show at the depth of 2,006 2,011 MD flowed thru 28/64 : 1.8 MMSCFD BCPD BWPD. Continue testing at interval : 1,499 1,516 feet MD. Rimau Block PSC, South Sumatra The Company spudded two new exploration wells in Rimau. The first one is in Taba-1 well which was spudded in September 10th and planned to drill a total depth of 678 feet MD. As of the end of October, the Company drilled to a total depth of 580 feet MD and has no result so far. The second exploration well is Taba-2 well which was spudded in October 24th and planned to drill a total depth of 532 feet MD. As of the end of November, the Company drilled to a total depth of 545 feet MD and also has no result so far. The company prepare to continue testing the well with thermal huff-puff cyclic.

5 South & Central Sumatra Block PSC The Company spudded North Temelat-2 well in November 20th and planned to drill a total depth of 2,530 feet MD. As of the end of November, the Company drilled to a total depth of 1,902 feet MD and has no result so far. The company will continue drilling to the programmed total depth. Merangin-I Block PSC, Jambi Province Background Results The Merangin I Block PSC is located in Jambi Province. The block is an exploration block and Medco started to operate the block in After 6 years exploration period, the government approved to extent the exploration period from 2009 to The Company holds 80 % of Working Interest, whereas MOECO holds the remaining 20%. The Company spudded Solo-1 well in September 12th and planned to drill a total depth of 8,180 feet MD. As of the end of November, the Company drilled to a total depth of 8,214 feet MD. Tested 2 (dua) zones : Depth 4,750 4,757 feet, test result mmscfd (choke 8/64 ). Depth 4,591 4,610 feet, test result mmscfd & bcpd (choke 24/64 ). Temporary suspend for further evaluation. Drilling Activities Summary Jan Feb Mar Apr May Jun Jul Aug Sep- Oct Nov Actual Exploration Development Major Project Progress Report Rimau EOR Production and injection chemical blending facilities, construction progress 78% EOR Peer review by Petrotel has been done. Surfactant 1st batch lab test by LEMIGAS, RIPED and Medco was completed. 20 of 22 of EOR Pilot wells were completed and ready for pre-flush injection.

6 Production Report Oil Production (mbbls) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Total Rimau ,480.0 S & C Sumatra ,534.4 Tarakan Sembakung Bawean Tiaka USA TOTAL OIL ,202.9 Gas Sales (bbtu) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Total S & C Sumatra 4, , , , , , , , , , , ,449.2 Lematang ,800.7 Tarakan ,573.2 USA TOTAL GAS 5, , , , , , , , , , , ,699.0 Electricity (GWH) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Total Power Prod. - IPP ,164 Power Prod. - O&M ,733 Downstream Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Total Fuel Distribution / KL 11,636 13,516 17,031 35,119 25,532 29,220 15,753 21,295 22,342 29,499 15, ,739 Ethanol Production /KL 1, ,536 2,819 2,984 1, ,354 LPG Production / MT 1,366 1,161 1,330 1,243 1,288 1,272 1,142 1,330 1,304 1,364 1,181 13,981 5,400 TOTAL OIL TOTAL GAS 5,334 5,302 1,100 5,200 5,000 4,800 5, , , , , ,921 1, ,600 4,703 4, ,400 4, , ,000 bbtu Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 400 mbbls

7 WTI, Brent and ICP Oil Price 130 ICP WTI Brent Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov