PT Medco Energi Internasional Tbk has announced its consolidated financial statements for the period ending 30 September 2014 (“3Q 2014”).

In 3Q 2014, the Company has succeeded again in exploration activity by finding new oil and gas reserves at Hijau-2 well, South Sumatera Block, Indonesia as well as at P2 and O2 wells in Area 47, Libya. MedcoEnergi has also successfully completed the acquisition of 100% shares of Storm Ventures International (Barbados) Ltd. with Chinook Energy, Inc. for the ownership and participating rights in eight E&P working areas in Tunisia. Furthermore, the Company continuously demonstrates its commitment to develop the domestic gas market by signing two Gas Sales and Purchase Agreements (GSPA) with PT PLN Persero and PT MEPPOGEN. These gas supplies will be used for power generation to meet electricity demands in the South Sumatera and North Kalimantan regions respectively.

As of this quarter, MedcoEnergi has booked total revenue of US$ 552 million. The oil and gas exploration & production sector (“E&P”) contributed 94% to this amount, or equivalent to US$ 518 million, with a total volume of oil and gas of 53,300 barrels of oil equivalent (BOE) per day for the period of 1 January – 30 September 2014. In accordance with the world oil price trend, the average oil price for the period was US$ 106.3 per barrel which was lower than the price in the same period of last year of US$ 108.5 per barrel. In contrast, the average gas price rose by 11% to US$ 5.60 per MMBTU from US$ 5.04 per MMBTU in 2013 as a result of the Company’s success in renegotiating gas sales contracts.

The Company recorded gross profit of US$ 199 million and operating income of US$ 138 million in 3Q 2014. The Company continues with its cost efficiency initiative and has succeeded in lowering operational costs by 10% from US$ 68 million for the third quarter of 2013 to US$ 61 million for the same quarter in 2014, and recorded an EBITDA (Earnings before Income, Taxes, Depreciation and Amortization) of US$ 215 million. In 3Q 2014, the Company booked profits attributable to the parent (Net Profit) from operations of US$ 9.5 million, a relatively stable performance compared to the same period of last year. These financial results have not reflected the positive contribution of production and financial performance from the Company’s assets in Tunisia, which will be recorded starting in October 2014.

President Director and CEO of MedcoEnergi, Lukman Mahfoedz commented that “The completion of Senoro Project has reached 87% and will reach its Mechanical Completion in early 2015. Meanwhile, the construction of Donggi Senoro LNG plant was completed and is currently under a commissioning stage. The completion of these two projects reflects the Company’s ability to realize its major projects which will be subsequently followed by other major projects such as Block A, Simenggaris, Libya and Tunisia in 2017 – 2019. On 17 September 2014, the Company has received the 2nd Commerciality Declaration approval upon the successful exploration and appraisal programs in Area 47, Libya. This Commerciality Declaration will add 74 MMBOE (gross) to the Company’s 2P Reserves (Proven & Probable), in addition to 208 MMBOE (gross) from the 1st Commerciality Declaration approval which was obtained in December 2011. Lukman closed by stating that “I am confident MedcoEnergi will grow along with the completion of Senoro Gas Projects in 2015, followed by other Major Projects started in 2017 onwards.”