Medco buying East Java oil field

Medco buying East Java oil field

JAKARTA : Indonesia's oil and gas company PT Medco Energi
Internasional is in the process of buying an onshore oil field in
Tuban, East Java, from Australia's Energy Equity Corp., a Medco
official said Thursday.

Medco's Chief Financial Officer Sugiharto said the two
companies signed a preliminary agreement last week.

The deal, however, is subject to conditions, including
approval from minority shareholders.

Sugiharto declined to disclose the value of the transaction -
giving only a range of US$20 million to $40 million - as the
listed company must report it first to the Indonesian capital
market watchdog Bapepam.

The field has started production, he said without further
details. "So, the field will contribute cash flow to the company
this year," he added. --Dow Jones