Medco to acquire 2 oil blocks in Irian Jaya

Medco to acquire 2 oil blocks in Irian Jaya

Dow Jones
Jakarta

Indonesia's PT Medco Energi International said Friday it has
signed a memorandum of understanding to acquire Apex Yapan Ltd.'s
90 percent working interest in Yapan Block Irian in Irian Jaya
province.

"We plan to conclude the purchase of the Yapan oil block in
October," Medco's Finance Director, Soegiharto, told reporters.

Soegiharto said his company has also signed another MOU with
Ramu International Ltd. for its 60 percent working interest in
the Rombe Bai Block, also in Irian Jaya.

He didn't disclose the value of the acquisition of the two oil
blocks.

Soegiharto said the acquisition is part of Medco's strategy to
replace and add oil and gas reserves.

Medco expects to close the sale and purchase agreement for the
acquisition of the block held by Ramu International Ltd. also in
October.

He said Medco will use proceeds from the US$100 million
eurobonds issued earlier this year and its internal cash to
finance both acquisitions.

Medco recently spent $30 million of the proceeds from a $100
million eurobonds issue to finance acquisitions, including an
exploration field in East Kalimantan, oil producing Tuban joint
operating block in East Java, and the Asahan block in North
Sumatra.

Last week, it signed an MOU to acquire Petroleum Development
Associates (Asia) BVI for its 60 percent working interest in the
Lematang block in South Sumatra for $6.3 million.

Thailand's PTT Exploration & Production PCL owns a 34 percent
stake in Medco.