The new leases cover Brazos Area Blocks 435, 492, and 514, located in water depths of 65 to 80 feet in the Gulf of Mexico. Each of these leases covers 5,760 acres of federal waters. Each lease carries a five-year primary term in which to establish commerciality, and a perpetual term for the life of production once production is established. MEUS owns a 100% working interest in each of the blocks, which are all subject to a 16.67% royalty in favor of the United States government. Medco's cost for the 17,280 net acres covered by these blocks is $796,522.
Dave Gibbs, MEUS' president stated, "We are pleased to add these leases to our active inventory. The company has an aggressive drilling budget for 2007 and these leases will figure prominently in our program. These leases significantly increase our acreage position in the Gulf of Mexico and demonstrate our commitment to the US energy business."
Medco Energi US LLC is a wholly owned subsidiary of PT MedcoEnergi Internasional TBK ("MedcoEnergi"), and 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 Oman, Libya, and the Gulf of Mexico in the United States and in several areas in Indonesia.
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