(TIS) - The following is a statement from PT Sugih Energy.

PT SUGIH ENERGY TBK
(Incorporated in the Republic of Indonesia)
NEWS RELEASE – FOR IMMEDIATE RELEASE
Sugih obtains majority interest in Selat Panjang PSC
Acquisition provides Sugih with first producing asset; expected
to further enhance the Company’s portfolio of onshore assets
August 1, 2013 – PT Sugih Energy Tbk (“Sugih” or “the Company”) announces that the
Company has obtained 55 percent participating interest and operating rights to the Selat
Panjang PSC (“Selat Panjang block”), located in Riau province, Sumatra, Indonesia.
The acquisition comes following the completion of a conditional share purchase
agreement on April 18, 2013, in which Sugih acquired 55 percent of shares in Petroselat,
Ltd. from the previous operator of the Selat Panjang block. The shares were purchased
through the ownership by PT Petronusa Bumibakti and International Mineral Resources,
Inc. for a purchase price of approximately US$88.8 million.
The Selat Panjang block is an already-producing asset, with daily oil output of
approximately 300 BOPD, and is expected to produce approximately 5 MMCFD starting
in 2013.
President Director of Sugih, Mr. Andhika Anindyaguna, said, “The completion of this
acquisition is a major accomplishment for Sugih, as the Selat Panjang will become our
first producing asset. We expect production from this asset to immediately impact our
balance sheet and positively impact our financial performance for FY 2013.”
“Furthermore, the Selat Panjang block fits with Sugih’s strategy of acquiring lower-cost
assets located in proven onshore basins in Indonesia. We are confident that this asset –
along with the rest of our portfolio – holds significant exploration upside, which will
deliver value to our shareholders.”
The Selat Panjang block is located in the eastern region of Riau province, Sumatra, and
consists of a total area of 1,311 km2. The block is adjacent to Kondur’s Malacca Strait
PSC and is west of BSP-Pertamina’s Coastal Plain Pekanbaru PSC.
The Selat Panjang Block consists of two major zones, Sihapas and Pematang. The
Sihapas zone has been in production since 1994 with average total annual production of
99,962 barrels of oil. The Sihapas zone has remaining reserves of approximately 7.28
MMBO (2P). Additionally, the Pematang zone has recoverable reserves of
approximately 32.7 MMBO and 245 BCF (2P).
Based on geological and geophysical studies and a 3D seismic program, the Selat
Panjang block has 7 prospects with total resources of approximately 323 MMBO and
1,455 BCF.
The remaining 45 percent participating interest in the block is held by PetroChina
International Selat Panjang Ltd.
- End -
About Sugih Energy:
Sugih Energy is an integrated energy services company with over 20 years of
experience in the Indonesian market. The company was listed on the Indonesia Stock
Exchange (IDX) in 2002, trading under “SUGI.”
In 2010, Sugih changed its corporate strategy to become an energy producer for
Indonesia. The company now has two core areas of focus, oil and gas exploration and
oil and gas services. Through its subsidiaries, Sugih holds participating interest in three
exploration blocks in Sumatra, Indonesia; 49 percent participating interest in the Lemang
PSC block (non-operator), 55 percent participating interest in the Selat Panjang PSC
block (operator), and 100 percent participating interest (operator) in the Kalyani PSC
block.
Sugih’s oil and gas servicing operations are carried out by its subsidiary, PT Resources
Jaya Tehnik Management Indonesia (“RMI”). RMI provides integrated drilling services,
equipment procurement and rental, rig mobilization, well work-over and enhancement
services, as well as drilling consulting throughout Indonesia.
For more information, please visit: www.sugihenergy.com.
Issued by Archipelago Marketing & Communications on behalf of Sugih Energy:
For further information, please contact:
Sugih Energy
Fachmi Zarkasi
(+62) 21 2358 6399
fachmi.zarkasi@sugihenergy.com
Archipelago Marketing & Communications:
James Allan
Singapore: (+65) 9776 8064
james.allan@archipelagocommunications.com
Alvi Tirtadji
Indonesia: (+62) 821 1001 0034
alvi.tirtadji@archipelagocommunications.com