Medco Energi Turns to Debt Market with US$ 177 million in Convertible Bonds
The Jakarta Post, page 14, 2006-05-11
PT Medco Energi Internasional said it raised US$ 177 million selling bonds convertible into shares to fund its operations. The zero-coupon bonds, which will mature in 2011, were priced to yield 7.25 percent and are convertible into shares that were bought back by the company in 2001. Medco plans to spend Rp.400 million this year to explore for oil and gas and in ventures with other energy companies. Medco’s revenue from the sale of oil, gas, electricity and methanol rose to US$ 620.2 million last year from US$ 550.1 million in 2004. Credit Suisse Group and Deutsche Bank AG managed the sale of the bonds, which can be converted into shares at Rp.6,923.75, 45 percent above Medco’s closing price on Tuesday. Medco’s shares fell Rp.50 to Rp.4,725 a share at 1:57 pm in Jakarta. The shares have risen 39 percent since the beginning of the year. Medco will take out loans to finance 70 percent of the planned US$ 400 million of spending this year.

PLN Secure CNG Supply from Medco
The Jakarta Post, page 13, 2005-09-22
Looking for a new source of power to anticipate soaring global oil prices, PT PLN plans to acquire compressed natural gas (CNG) for its power plants from PT Medco Energi Internasional’s Senoro Field in Sulawesi. The Senoro block in Southeast Sulawesi has a reserve of 1.5 trillion cubic feet (tcf) of gas and a possible 1.1 tcf reserve. The CNG will be used for PLN’s plants in Bali, South Sulawesi and Southeast Sulawesi. PLN will get approximately 100 million standard cubic feet per day (mmscfd) of CNG, adequate to generate 100 megawatts of power. The project is projected to commence in 2008. Medco, as PLN’s partner, will form a task force to study the feasibility of the CNG supply