1H 2008 Production & Financial Results

August 2008

Notices and Disclaimers

This presentation has been prepared by PT Energi Mega Persada Tbk (the Company) and is only for the
information of its investors. None of the information appearing in this presentation may be distributed to the press or
other media or reproduced or redistributed in the whole or in part in any form at any time.
This presentation is not intended as or forms part of any offer to sell or subscription of or solicitation or invitation of
any offer to buy or subscribe for any securities, and neither this presentation nor anything contained herein shall
form the basis of or be relied on in connection with any contract or commitment whatsoever.
This presentation may contain forward-looking statements and estimates with respect to the future operations and
performance of the Company and its affiliates.
Investors and security holders are cautioned that forward-looking statements are subject to various assumptions,
risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company.
Such assumptions, risks and uncertainties could cause actual results and developments to differ materially from
those expressed in or implied by the forward-looking statements.
Accordingly, no representation or warranty, either expressed or implied, is provided in relation to the accuracy,
completeness or reliability of the information contained in this presentation, nor is it intended to be a complete
statement or summary of the resources markets or developments referred to in this presentation. It should not be
regarded by recipients as a substitute for the exercise of their own judgment.
Neither the Company or any other person assumes responsibility for the accuracy, reliability and completeness of
the forward-looking statements contained in this presentation. The forward-looking statements are made only as of
the date of this presentation. The Company is under no duty to update any of the forward-looking statements after
this date to conform such statements to actual results or developments or to reflect the occurrence of anticipated
results or otherwise.
Any opinions expressed in this presentation are subject to change without notice and may differ or be contrary to
opinions expressed by other business areas or groups of the Company as a result of using different assumptions
and criterion.

ENRGs Blocks Operated in Indonesia

Gebang PSC / JOB
Oil & Gas Production

Korinci PSC
Gas Production

Tonga
PSC

Gas Development

Oil & Gas

Production
AT
M
SU

Bentu PSC

Semberah TAC

KALIMANTAN

RA

Malacca Straits PSC

SULAWESI

Oil Production

Gelam TAC
Oil Production
Jakarta
JAVA

Legend :
: ENRG Operated

SUCI

Kangean PSC
Oil & Gas Production

: MJ Strategic Alliance
: Joint Operated with Pertamina
: Operation Cooperation Agreement with Indelberg and Pertamina

Consolidated Corporate Structure

75 %

75 %
PT Indelberg
Indonesia
Perkasa

PT Mosesa
Petroleum

Energi Mega
Pratama Inc.
(B.V.I)
100%

(Kangean)

EMP
Exploration
(Kangean)
Ltd. (England)
40%

WI-71.25%

Suci KSO

100%

0.00002%
49,999 %

Energy Mega
Persada
PTE. LTD
(Singapore)

100%

100%

100%

Kangean
Energy Ltd.
(Delaware)
60%

WI-100%

Tonga
PSC PSC Kangean PSC

99.99%
Tunas
HarapanPerkasa
(Indonesia)

Resources
Holding Inc.
(Delaware)

99.99%
PT Imbang
PT Imbang
Tata Ala
Alam
Tata
m
(Indonesia)
(Indonesia)

Kondur
Petroleum
S.A
(Panama)

99.99%

100%

99.99%

PTSemberani
Persada
(Indonesia)

PT Insani
MitraGelam
(Indonesia)

100%

Costa
International
Group Ltd.
(B.V.I.)

100%

Kalila
(Bentu)
(Bentu) Ltd
Ltd
(B.V.I.)

Kalila K
(Korinci
orinci
Baru)
Baru) Ltd
Ltd
(B.V.I.)

26.03%

34.46%
WI - 60.49%

Malacca Strait PSC

WI - 100%

WI -100%

WI - 50%

WI - 100%

Semberah Sungai
Gebang
TAC
Gelam
TAC
JOB
JOB
Gelam TAC

WI - 100%

Bentu
Bentu
PSC
PSC

Korinci
KorinciBaruPSC
PSC
Baru

EMP

EMP

(Pertamina)

Mitsubishi
Japex

Pertamina

OCA/KSO

EMP

MJ / EMP
Strategic Alliance

CNOOC

EMP

EMP

EMP

Joint

Financial Results Summary: B/S

1H 2007

1H 2008

(In IDR billions)

ASSETS
Cash Related
Oil & Gas Properties*
Other Assets
Total
LIABILITIES
Long-Term Debt
Other Liabilities
Total

1,146
3,858
2,859
7,863

2,141
5,036
3,040
10,217

2,867
1,727
4,594

4,498
2,308
6,806

MINORITY INTEREST

EQUITY
Capital Stock
Add paid In Capital
Difference due to
equity change in subs
Other equities
Total

*Oil and Gas properties reflect

historical finding and developments
costs only. This conservative
treatment enables significant flexibility
for the company in implementing full
cost accounting under Indonesian
Accounting Standards.

37

1,440
3,355
1,292

1,440
3,355
1,263

(2,818)
3,269

(2,684)
3,374

*Cash related balance improved by

87% to Rp2.1 trillion in 1H 2008

Financial Results Summary: P&L

1H 2007

1H 2008

Change

Net Sales

444

890

100%

EBITDA

132

393

198%

Profit (Loss) before Tax

(21)

135

Current Tax

(22)

(37)

Deferred Tax

174

(22)

(in IDR billions)

*In 1H 2007, commercial prod has

not exceeded Sunk Cost pool to
recover the development and
exploration costs spent earlier.
Consequently deferred tax benefit
is booked

*In 1H 2008, ENRG starts

commercially producing the
investments spent in development
and exploration activities. Thus, no
deferred tax benefit was booked as
it was last year. Therefore, sales
increases

*Sales, EBITDA improved due to

higher oil price and increased gas
output.

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1H 2008 Operational Results

Daily Gross Production

Realised Price

Liquids

Liquids

MBOPD

US$/bbl

Gross 2P Reserves
362 MMBOE Proved Oil
Proved Oil
Probable Oil
Probable Oil 8 %

9%

Proved Gas

8%
10%

10.9

104.3

10.2

42 %

Probable
Gas
Probable

63.2

41 %
44%

38%

Proved
Gas

Gas

1H 2007

1H 2007

1H 2008

Jan-May 2008
Oil

Oil

Gas

Drilling Activity

Gas

US$/mcf

BBTUD

30

86

2.7

36

20
14

81

2.5

1H 2007

1H 2008
Gas

1H 2007

Jan-May 2008
Gas

2004

2005
Development

Finding, Development and Acquisition Cost (5-yr running average) = US$ 1.6/ boe
Production Cost in 2007 = US$6.7/ boe

8
2006

3
2007
Exploration

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Production Achievement and Forecast

Average Daily Production rate in 2007 and 2008
mboepd
35.0

32.0

Gas
Oil
30.0

25.0

24.2

24.5

20.0

15.0

10.0

5.0

2007

2007
1H 2008
2008 (E)

1H 2008

2008 (E)

: Average Daily Production Achieved 10.9 mbopd and 80 bbtud.

: Average Daily Production Achieved 10.2 mbopd and 86 bbtud.
: Organic Production forecast of 17.4 mbopd and 88 bbtud.

Increasing Trend of Gas Price in Indonesia

Pre 2006

2006-2007

1H 2008

ENRGs Gas Price Upside:

1.
2.
3.

Kangeans TSB gas supply to PLN, PKG, Pertagas @ $4.1/mmbtu (contracted: 855 Bcf / 20102028)
Korincis gas supply to RAPP @ $4/mmbtu (contracted: 86 Bcf / 20072020)
Gebangs gas supply to Energasindo @ $4.8/mmbtu (contracted: 28 Bcf / 20082015)

Malacca Strait PSC Operational Update

Performance

Malacca Strait Working Area Map

ENRGs largest oil producing

asset

Successful Production
Enhancement Program and
development drilling activities
from the existing fields

Successful hydraulic fracturing
works at DC-8 and DC-9 wells

2D offshore seismic to find new
prospect in the northern part of
Malacca Strait to be initiated in
2H 2008
Oil (mmbbl)
Gas (mmboe)
Total (mmboe)

1P

2P

3P

Resources

28

32

39

11

28

32

39

12

10

Malacca Strait PSC Production Facilities

EMP Malacca Lalang Production

Platform

Ladinda Oil Storage Tanker

EMP Malacca Strait Platform

Processing Plant
11

Kangean PSC Operational Update

Kangean Working Area Map

Performance

Positive Results from

Sepanjangs SED-3 and SED-4
wells to flow 3,000 bopd and
6,500 bopd respectively (SED1A well has proven to flow up to
3,500 bopd)

Sepanjang Oil Production to
recommence as soon as the
FSO tanker with higher storage
capacity (400,000 Bbls) is
available

TSB fields first gas by 1H 2010
@ 300 mmcfd

Improved gas price from TSB
field to US$ 4.1/mmbtu

Gross Reserves
1P
2P

3P

Contingent
Resources

12

22

Gas (mmboe)

11
120

230

318

11

Total (mmboe)

121

242

340

11

Oil (mmbbl)

12

Kangean PSC Production Facilities

Storage Tanks for Condensate

Pagerungans Gas Processing Facilities

LPG Mini Plant - 4

Jack up Rig & Drilling Facility

13

THP Areas Operational Update

THP Working Areas Map

Performance
Korinci Baru PSC

Gas supply to RAPP@ US$4/mmbtu (2%
escalation / 3 years) in Dec07 and to PLN
@ US$2.65/mmbtu (escalation) in Jun07
Semberah TAC

Gas supply to VICO @ US$5.9/mmbtu in
Jul08 and to PLN @ US$2.72/mmbtu
(escalation term) in Jun07

Oil prod enhancement from development
wells at SBR-16, SBR-18 (Dec07) and
SBR-17 (Jan08)
Gebang JOB PSC

HoA to supply gas of 12 mmcfd to
Energasindo signed @ US$4.8/mmbtu in
Oct07 (3% escalation / year).
Gelam TAC

3D seismic shot completed in June 2007 to
confirm uncertified reserves and resources

Gross Reserves
1P
2P
Oil (mmbbl)

3P

Contingent
Resources

18

84

Gas (mmboe)

29

70

128

87

Total (mmboe)

33

88

212

88

14

THP Assets Production Facilities

(Production facilities)

Gebang PSC/JOB
(Gas processing facilities)

Semberah TAC
(Binangat production facilities)

Gelam TAC
(On Shore Rig)

Korinci Baru/Bentu PSC

15

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Organic and Acquisition Strategy Increase Reserves

(Gross mmboe)

16

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Gross Reserves & Resources (as per FYE 2007)

Gas Reserves (mmboe)
Cert

(1)

1P

2P

3P

Oil (mmboe)
Cont.
Res.

1P

2P

3P

Total 2P
Cont.
Res.

(mmboe)

(% )

EMP
Kangean
GCA / SPROULE
Malacca Straits GCA

120
120

230
230

318
318

11
11
22

1
28
29

12
32
44

22
39
61

1
1

242
32
274

67%
9%
76%

24
2
3
29

48
12
9
1
70

76
17
29
6
128

67
20
87

1
3
4

5
13
18

50
33
1
84

1
1

48
12
5
22
1
88

13%
3%
1%
6%
0%
24%

149

300

446

109

33

62

145

362

100%

THP
Bentu
Korinci
Gelam
Semberah
Gebang

MHA
MHA
GCA
GCA
GCA

Total (mmboe)

Notes:
(1) Gross reserves have been certified by independent certification agencies such as Gaffney, Cline and Associates, Sproule International and MHA Petroleum Consultants.
(2) The gross reserves stated in the above table reflect EMP's latest independent reserve appraisal. EMP has taken a conservative approach to reserves in setting depreciation,
depletion and amortization (DDA) policy as explained in the Audited Financial Statements. When an approved plan of development (POD) contains reserve estimates
lower than the independent certification, the POD estimate is used for DDA purposes.
(3) Reserves and Contingent Resources totals subject to rounding.
(4) Contingent Resources are 2C.

17

Key Corporate Actions that Add Value

ENRG Right Issue (Rp770/share)

Dilluted ownership in KEL and PAN

(direct owners of Lapindo Brantas)

Rp3.78 Trillion

ENRG IPO (Rp160/share)

Farmed out 50% of Kangean

(US$3/boe on 2P Reserves)

Rp455.59 Billion

US$360 Million

Jun-04

Aug-04

Dec-05

Acquired
Kangean
PSC
(US$0.8/boe on 2P Reserves)
US$165 Million

Jan-06

May-07

Jun-07

Mar-08

Apr-08

Formed strategic alliance with PT IIP

and Pertamina to cooperate a gas
asset (East Java)

Acquired THPs 5 Block

(US$1.6/boe on 2P + Contingent Resources)
US$283 Million

PSC

Acquired controlling stake 54% in

Tonga PSC
US$11.8 Million

18

Tonga PSC Acquisition

Updates

Tonga Working Area Map

ENRG acquired 75% shares

in Mosesa Petroleum from
Masagena Agung for US$
11.8 Mln

Mosesa Petroleum holds
71.25% Working Interests in
Block Tonga PSC

The PSC term is good until
year 2037

TONGA

Working area size: 2,607

SQ.KM

19

Tonga PSC Resources and Discovery

Updates

Tonga Working Area Map

An Exploration Asset with an

Upside of Oil Discovery in
Tonga-1 Well

Discovery: Oil Flow Test
Result of 850 BOPD from 2
zones

Commercial Oil Production is
to commence in 2H 2009

Tonga PSC is located in
Central Sumatera Oil Basin
and is estimated to have
Resources up to 90 MMBOE
of Oil and Gas

Tonga-1
Discovery

20