Medco buys two oil fields

Medco buys two oil fields

JAKARTA (JP): Publicly listed oil and gas company PT Medco
Energy Corporation has acquired a majority stake in two oil and
gas fields located in East Kalimantan and Madura.

Medco reported Tuesday that it had signed an agreement to
purchase a 75 percent stake in Western Simenggaris Petroleum Pty.
Limited, which runs the East Kalimantan oil and gas field, and
another 75 percent stake in Western Madura Pty. Limited which
operates the Madura oil and gas field.

Both companies were previously controlled by City View Asia
Pty. Limited, a subsidiary of the Australian based City View
Energy Corporation Limited, a Medco spokesperson said in a
statement.

According to Pertamina, the state oil and gas company, the
Western Kalimantan field, covering 2,734 sq km, and the Madura
field, with 2,719 sq km field, have good oil and gas potential.

However, Pertamina said, the two fields required further
exploration to determine the extent of reserves.(03)