Private oil firm EMP to sell 25-30% stake

Private oil firm EMP to sell 25-30% stake

The Jakarta Post, Jakarta

The country's second largest privately owned oil and gas
company PT Energi Mega Persada (EMP) plans to sell a large
portion of its shares to the public next month via an initial
public offering (IPO) to raise cash for development of its
hydrocarbon resources.

EMP finance director Nazamudin Latief told The Jakarta Post on
Friday that the company planned to offer 25 percent to 30 percent
of its shares to the public at the initial price of around Rp 100
per share.

"We expect between Rp 425 billion (US$50 million) and Rp 510
billion in cash from the IPO, which will be used partly to
finance the development of our new onshore oil and gas fields in
East Java and Kondur Island (in the Strait of Malacca)," said
Nazamudin.

The company also plans to use some of the proceeds to seek new
gas and oil resources, he said.

The company has appointed PT Danatama Sekuritas as the lead
underwriter for the IPO. EMP shares are expected to be listed 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.

Kondur produced 10,500 barrels of oil per day (bpd) last year
from its production sharing contract (PSC) block in the Riau
archipelago's Kondur island, which is believed to contain an oil
reserve of 61 million barrels.

Nazamudin said that this year, EMP had projected an increase
in its oil production to around 12,000 bpd from Kondur.

As for its gas business, EMP expected Lapindo Brantas, which
operates PSC block in Brantas, East Java, to be able to produce
80 million cubic feet per day by the end of this year, up from
the current 68 million to 70 million cubic feet per day, he said.

Lapindo has a contract to sell gas to PT Perusahaan Gas Negara
until 2008.

According to Nazamudin, EMP recorded an operating revenue of
around Rp 613 billion last year, with a profit of about Rp 115.8
billion.

For this year, the company has estimated its revenue to surge
to around Rp 623 billion with a profit of around Rp 190 billion,
he said.

EMP will be the country's second oil and gas company listed on
the JSX after PT Medco Energi Internasional.