MedcoEnergi Farms In on Offshore Texas Block
On Tuesday, May 30, 2006, the U.S. subsidiary of Jakarta-based PT MedcoEnergi Internasional completed the purchase of a 43.75% working interest in Mustang Island Block 758 in the western Gulf of Mexico.
MedcoEnergi US LLC bought the interest from based Rampant Lion Energy, LLC., which will remain as an active partner in lease. MedcoEnergi will be the operator.
Mustang Island profile Mustang Island Block 758 is a 5,760-acre block located in federal waters, offshore Texas in 154 feet of water. MedcoEnergi will immediately begin an aggressive evaluation and development drilling program. The company expects to spud its first well on the lease by late third quarter 2006.
The financial impact The purchase of this working interest is in line with one of MeccoEnergi’s corporate strategies to replace and add reserves through acquisition. However, this additional new lease will not materially affect to the current year financial performance of MedcoEnergi. MedcoEnergi will continuously pursue any opportunity to acquire other attractive oil and gas areas in the Federal OCS, in the Gulf of Mexico, which can add value to MedcoEnergi and its shareholders.
Update on U.S. assets activities MedcoEnergi now holds four oil and gas leases in the U.S. The company expects these assets to increase their contribution to the company's performance in the near future. In addition to the above program, several development programs will also be initiated in the existing assets.
Currently, MedcoEnergi is initiating the offshore phase of its new East Cameron Block 318 development program located in federal waters approximately 105 miles south-southwest of Intracoastal City, La. Offshore installation of its newly refurbished six-slot drilling and production platform is underway. Immediately upon installation of the platform in 223 feet of water, the company will begin installation of the Nabors Super Sundowner #19 platform drilling rig. Plans are to tie back and complete the previously drilled EC 318#3 well and drill up to four additional wells. First production is scheduled for late third quarter. The total development program is expected to conclude by late fourth quarter 2006.
When completed, production from this development program is expected to more than double the company's total net production from East Cameron to more than 30 MMCFED.
MedcoEnergi is also continuing its ongoing production and development activities at its Main Pass 64/65 complex, offshore Louisiana.
MedcoEnergi US specializes in mature field re- development activities in the Gulf of Mexico and coastal areas of Texas and Louisiana.
MedcoEnergi is a publicly listed integrated energy company in Indonesia, with business involvement in oil and gas exploration and production, oil and gas drilling services, methanol production, LPG production, and power generation. It has operations in Libya, the U.S. Gulf of Mexico, and several areas in Indonesia.
Rampant Lion Energy LLC, is an oil and gas limited liability company in Houston, Texas, established under the laws of the State of Louisiana.
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