REPUBLIKA.CO.ID, JAKARTA -- Listed oil and gas company, PT Medco Energi Internasional through its subsidiary, Medco Asia Pacifik Ltd has completed a purchase agreement with Moonbi Enterprises Ltd. Medco has acquired 90 percent shares in Moonbi's subsidiary, Moonbi Energy Limited.

Medco Energy has obtained a license to carry out oil and gas exploration in Juha, Papua New Guinea for six years written in Petroleum Prospecting License No. 470 (PPL 470). PPL 470 is composed of four on-shore blocks covering working area of 324 square kilometers located in Papuan Fold Belt or Papuan Basin.

Papuan Basin is estimated to have potential of oil and gas as its position, which adjacent to Juha gas field operated since 2000. President Director of Medco Energy, Lukman Mahfoedz said that the acquisition based on company's strategy to focus on high quality of exploration.

"PPL 470 offers an attractive gas fiscal system with royalty. Contractors will get 70 percent of production," Mahfoedz said recently as reported by Friska Yolandha.

He believes that PPL 470 is important to add value to the company. This field is expected to support company growth. Medco has taken over 90 million USD of its capital expenditure for this exploration. Company also plans to increase its capital expenditure up to 155 million USD.

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