PT Energi Mega Persada (IDX: ENRG) prepared an investment US$100 million to acquire new assets and to develop the existing projects - Photo by the Company

JAKARTA (TheInsiderStories) – Unit of Bakrie Group, PT Energi Mega Persada Tbk (IDX: ENRG) plans to acquire new assets and to develop the existing projects, said the spokesman on Wednesday (04/07). The energy producer aims to increase gas production in several of its blocks and prepared an investment US$100 million for the goals.

Herwin Hidayat told Kontan, the company plans to develop Buzi gas block in Mozambique, Gebang Block in Sumatra, oil drilling in the Malacca Block and Bentu Block in Riau. To finances the projects, the issuer in the process to finalize the rights issue plan in this year.

Energi Mega targeting to releases 14.48 billion shares with an indicative price of Rp126 a unit or open to raise fresh funds Rp1.82 trillion.Based on the public announcement, PT Bakrie Kalila Investment become a standby buyer of the limited public offering and is estimating to be completed in this year.

With the debt payment, he expect to reduce interest expenses, strengthen liquidity, and boost the company’ profitability. While, part of the proceeds will be used to acquires an additional 25 percent stakes in the Kangean PSC Block located in East Java from Kinross International Group Ltd.

“After the acquisition is completed, our ownership in the Kangean Block will increase to 75 percent from currently 50 percent,” said president director & CEO of Energi Mega, Syailendra Bakrie, on Jan. 21.

The Kangean block is a vital asset for the company. Throughout 2020 alone, 48 percent of the issuer’ oil and gas production came from this block. Last year, the Kangean’ wells produced 185 million cubic feet of gas per day. Then, around $43.59 million from the total rights issue will use to pay the company’ debts.

In Africa, the company has drilled two wells which are planned to be completed in the second semester of 2021. The energy producer hope that the Buzi block can start the gas production in 2024.

“We are also ready to lift up the production from other oil and gas assets, including the Malacca Strait block,” adds by the CCO, Adinda Bakrie.

Apart from these three main blocks, Energi Mega is also carrying out the development of the Sangata Block in East Kalimantan. The company has a participating interest of 42 percent in the block. The unit has received an extension of the exploration period until April 2022.

US$1: Rp14,500

Written by Editorial Staff, Email: theinsiderstories@gmail.com