EMP to sell 30% stakes via IPO

The Jakarta Post, Jakarta

Indonesia's second largest privately owned oil and gas company, PT Energi Mega Persada (EMP), will sell 30 percent of its shares to the public at between Rp 110 (1.2 U.S. cents) and Rp 170 via an initial public offering (IPO) in May, a company official said.

EMP president Rennier A.R. Latief said on Thursday that the 30 percent stake was equivalent to 2.84 billion shares.

The company has appointed PT Danatama Sekuritas as the lead underwriter for the IPO. Its shares are also expected to gain a listing on the Jakarta Stock Exchange (JSX) in May.

EMP is the parent company of Panama-registered oil firm Kondur Petroleum S.A. and gas producer Lapindo Brantas Inc.

According to Rennier, 40 percent of the proceeds resulting from the IPO will be invested in developing Kondur's oil and gas block in Malacca, and 60 percent will be invested in Lapindo's oil and gas project in Brantas, East Java.

The company plans to drill 39 wells this year in Malacca and Brantas, consisting of 19 exploration wells and 20 development wells.

Total investment in 2004 will amount to US$135.7 million, comprising of US$72.6 million in capital expenditure and $63.1 million in operational expenditure.

EMP has projected an increase in its oil production to 12,000 barrels per day (bpd) from the current 10,500 bpd. It also expects to produce 80 million cubic feet of natural gas per day, up from the current 68 million to 70 million cubic feet per day.

EMP took in operating revenue of around Rp 613 billion last year, and booked a profit of about Rp 115.8 billion.

This year, the company's revenue is forecast to surge to around Rp 623 billion with annual profit coming in at around Rp 190 billion.

EMP will become the second Indonesian oil and gas company to be listed on the JSX after PT Medco Energi International.