Medco output may surge 18% after acquisition

Medco output may surge 18% after acquisition

The Jakarta Post, Jakarta

Publicly listed energy company PT Medco Energi Internasional
expects its oil and gas output to soar by 18 percent after
acquiring a majority stake in Australia-based Novus Petroleum
Ltd.

In a press statement on Tuesday, Medco said that by taking
into account Novus' production, the company expected its oil and
gas production to increase this year to 33 million barrels of oil
equivalent (MMBOE) from 28 MMBOE last year.

"The successful acquisition of Novus will mark the entrance of
Medco to the Middle East region, as Novus owns interests in seven
blocks in Oman, United Arab Emirates and Qatar," said Medco.

Medco -- which was founded by businessman-turned-politician
Arifin Panigoro -- also expects that its proven oil and gas
reserves as a result of the acquisition will increase by 50
percent to about 210 MMBOE from 140 MMBOE as of the end of last
year.

As of June 21, 83.36 percent of Novus shareholders had
accepted Medco's offer to buy the shares of the Sydney-based
company for A$1.90 each, or a total of A$350 million.

Shareholders that have accepted the offer include Novus'
largest single entity shareholder Japan's Mitsui & Co., which
owns 13 percent of Novus.

The bid offered by Medco is higher than those of Australia's
Sunov Petroleum Ltd, which offered A$1.85 per share, or A$341
million.

Medco shares ended higher at Rp 1,350 from 1,325 on the
Jakarta Stock Exchange on Tuesday.