EMP Begins Production at Sepanjang Island

PT Energi Mega Persada Tbk reported that its operating subsidiary, EMP Kangean, successfully commissioned production facilities and commenced commercial oil production from the Sepanjan Island Oil Field in the Kangean PSC, East Java on January 22, 2007.

The field is now producing clean 32.2API gravity oil at an initial rate of 3,500 barrels per day from the SED-1A well with oil being sore in the FSO facilities located just offshore Sepanjang Island. The Mutiara tanker has a storage capacity of 200,000 barrels. BP Migas has approved Provisional ICP for Sepanjang Crude at ICP Widuri plus US $0.25 per barrel.

The well has the capacity to produce up to 9,000 bpd. The subsurface and surface production facilities will be fine tuned over the coming months to determine the optimal rate to sustainably produce the field. Production data gathered will then be incorporated into the planning for 2007 drilling to fully develop the field.

The SED-1A well was drilled in November 2006 employing Under Balanced Drilling (UBD) technology to maximize the productive potential of the Ngimbang carbonate reservoir.

Mr. Faiz Shahab, CEO of EMP said that "the combination of advanced technology application through under balanced drilling along with parallel low cost facilities development has allowed the productive potential of this field to be realized early to make a meaningful contribution to EMP's 2007 oil production."

Mr. Shahab went on to say that "the UBD technology could be leveraged to maximize production from other Kangean field such as the fractured carbonate reservoir in the West Kangean gas field that was scheduled for drilling in 2008."

BP Migas approved the plan of development for the field in November 2005.


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