Transcript Document

1H 2009 Results
PT Energi Mega Persada Tbk
October 2009
0
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.
1
EMP’s Activities in Indonesia
Gebang PSC / JOB
Oil & Gas Production
Gas Reserves: 7 mmboe
Gas Prod.: 0.31 mboepd
CBM
Tabulako
CBM
Sangatta-2
Korinci PSC
Tonga
PSC
Semberah TAC
Gas Production
Gas Reserves: 11 mmboe
Gas Prod.: 3.7 mboepd
KALIMANTAN
Bentu PSC
Gas Development
Gas Reserves: 48 mmboe
Gelam TAC
Oil & Gas Production
Oil Reserves: 11 mmbbl
Gas Reserves: 8 mmboe
Oil Prod.: 0.74 mbopd
Gas Prod.: 2.08 mboepd
Malacca Straits PSC
Oil Production
Oil Reserves: 35 mmbbl
Oil Prod.: 9.82 mbopd
SULAWESI
Oil Production
Oil Reserves: 3 mmbbl
Oil Prod.: 0.65 mbopd
Jakarta
JAVA
Legend :
: ENRG Operated
: Mitsubishi/Japex Strategic Alliance
: Joint Operated with Pertamina
Kangean PSC
Oil & Gas Production
Oil Reserves 10 mmbbl
Gas Reserves: 227 mmboe
Oil Prod.: 2.52 mbopd
Gas Prod.: 5.4 mboepd
* Reserves/production indicated above are gross to PSC
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Consolidated Corporate Structure
PT Mosesa
Petroleum
70 %
PT Visi Multi
Artha(
(Indonesia)
WI-60%
GMB
Sangatta-2
PT Tunas
Harapan
Tunas
Perkasa
Harapan
Perkasa
(Indonesia)
(Indonesia)
100%
Resources
Holding Inc.
(Delaware)
70 %
100%
100%
PT Artha
Widya
Kangean)
Persada
(Indonesia)
WI100%
GMB
Tabulako
EMP
Exploration
(Kangean)
Ltd. (England)
WI-71.25%
Tonga
PSC
PSC
60%
WI-100%
Kangean
PSC
Mitsubishi
Japex
EMP/
BUMI
EMP
MJ / EMP
Strategic Alliance
99.99% 99.99%
100%
Kangean
Energy Ltd.
(Delaware)
40%
Pertamina
EMP/
BUMI
99.99%
100%
0.00002%
49,99 %
Energy Mega
Persada
Energi Mega
PTE. LTD
Pratama Inc.
(Singapore)
(B.V.I)
75 %
PT Imbang
PT Imbang
Tata Ala
Alam
Tata
m
(Indonesia)
(Indonesia)
Kondur
Petroleum
S.A
(Panama)
100%
99.99%
PT
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
Kalila (K
( orinci
Baru)
Baru) Ltd
Ltd
(B.V.I.)
26.03%
34.46%
WI - 60.49%
WI - 100%
Malacca
Malacca
Strait
Strait
PSC
PSC
WI -100%
WI - 100%
Semberah
Semberah Sungai
Gebang
TAC
GelamTAC
TAC
JOB
Gelam
CNOOC
EMP
WI - 50%
WI - 100%
Bentu
Bentu
PSC
PSC
KorinciBaru PSC
EMP
EMP
Pertamina
EMP
EMP
Joint
3
10.9
2007
50
80
2007
2008
100
Production
88
2008
Price
12
8
BBTUD
Price
75
92
25
0
6M 2009
120
90
$5.9
13.8
60
4
2
4
10.5
30
$4.0
0
0
Gas
US$/mmbtu
4
3
2
0
Korinci/ Bentu’s Gas to PLN
(128.62 bcf)
Production
Gebang’s gas to Energasindo
(28 bcf/ 2008-2015)
HoA agreed in 2008
16
(3.65 bcf/ 2008-2009)
Contract signed in 2008
Daily Gross Production
*Semberah’s gas to VICO
US$/bbl
Kangean’s TSB gas to
PLN, PKG, PERTAGAS
(855 bcf/ 2010-2028)
Contract signed in 2007
MBOPD
Korinci’s gas to RAPP
(86 bcf/ 2007-2020)
Contract signed in 2007
Production & Pricing Profiles
Realized Prices
Oil
US$/mmbtu
8
6
$5.8
$5.0
$4.1
6M 2009
0
1
•Jul-Dec 09
Gas Price=(5%xICP)+1
4
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Production Achievement and Forecast
mboepd
Average Daily Production rate in 2008 and 2009
35
Gas
Estimate
30
25
24.5
25.1
6M 2008
2008
29.1
30
6M 2009
2009 (E)
Estimate: 20% Production Rate Growth
Oil
20
15
10
5
-
6M 2008
2008
6M 2009
: Average Daily Production Achieved 10.2 mbopd and 86 bbtud.
: Average Daily Production Achieved 10.5 mbopd and 88 bbtud.
: Average Daily Production Achieved 13.8 mbopd and 92 bbtud.
5
5
6M 2009 Financial Results
(In IDR billions)
ASSETS
Cash Related
Oil & Gas Properties*
Other Assets
Total
LIABILITIES
Long-Term Debt
Other Liabilities
Total
MINORITY INTEREST
EQUITY
Capital Stock
Add paid In Capital
Difference due to
equity change in subs
Other equities
Total
6M 2008
6M 2009
2,192
5,036
2,984
10,212
2,006
6,500
3,321
11,827
4,442
2,359
6,801
6,073
2,420
8,493
37
36
1,440
3,355
1,263
1,440
3,355
1,263
(2,684)
3,374
(2,760)
3,298
*Oil & Gas Properties went up due to
higher investments in development
activities in Q2 – Q4 2008. Their
associated capex were capitalized
*In Sep 08, ENRG obtained US$450
Mln loan which was required to retire
the maturing obligations and to
monetize our major reserves.
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6
6M 2009 Financial Results
6M 2008
6M 2009
Change
Net Sales
890
701
-21%
EBITDA
393
79
-80%
Current Tax
(37)
(17)
(in IDR billions)
Deferred Tax
Net Profit (Loss)
(22)
80
77
(245)
Sales and EBITDA were reduced
due to falling prices and higher
COGS from the non-routine well
work activities in 1Q 2009
The higher deferred tax in Q1
2009 n due to higher investment
activities in the past and a
consequence of translation from
PSC to GAAP accounting
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7
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 (66% of 2P)
(US$0.8/boe – on 2P Reserves)
US$165 Million
Jan-06
May-07
PSC
2 new CBM contracts (Tabulako & Sangatta-2)
(estimated resources: 1.5 TCF gas)
US$2.5 Million (Signature bonuses)
Jun-07
Mar-08
Apr-08
May-09
Formed strategic alliance with PT IIP
and Pertamina to cooperate a gas
asset (East Java)
Acquired THP’s 5 Block (24% of 2P)
(US$1.6/boe – on 2P + Contingent Resources)
Acquired 54% stake in Tonga PSC
(estimated resources: 90 mmboe)
US$283 Million
US$11.8 Million
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Gross 2P Reserves Breakdown
(as per 30/06/2009)
360 MMBOE
Proved Oil
10 %
Probable Oil
7%
Proved Gas
42
%
41%
Probable Gas
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Gross Reserves & Resources
(as per 30/06/2009)
Cert (1)
1P
3P
2P
Total 2P
Oil (mmboe)
Gas Reserves (mmboe)
Cont.
Res.
1P
2P
3P
Cont.
Res.
(mmboe)
(% )
EMP
GCA / SPROULE
Kangean
Malacca Straits GCA
121
121
227
227
315
315
11
11
22
1
28
29
10
35
45
21
45
66
1
1
237
35
272
66%
10%
76%
24
1
3
3
31
48
11
8
7
74
76
16
28
27
147
69
14
83
1
5
6
3
11
14
42
24
66
1
1
48
11
3
19
7
88
13%
3%
1%
5%
2%
24%
152
301
462
105
35
59
132
2
360
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.
10
10
CSR and SHE Achievements in 2008 - 2009
EMP received awards from Government for CSR and SHE achievements
* OHSAS 18001 standard
** Indonesia Environmental Compliance Rating for Industry,
also optional OHSAS 18001 certificate received
11
11
Plan to Improve Operational Performance
 Focus on achieving the 15 – 20% growth in the 2009 Production Rate
 Continue the successful efforts to increase the existing Gas Prices
 Focus on high success rate & acceptable cost projects (development drillings,
work over activities etc.)
 Work to bring the newly acquired assets (Tonga PSC, GMB Tabulako, GMB
Sangatta-2) into commercial production
 Geological and Engineering studies in GMB Tabulako and GMB Sangatta-2 are
currently in progress
 Ongoing tender process for 3-D Seismic works in Tonga PSC asset. The
seismic work is to be applied by end of 2009
12
Malacca Straits PSC Production Facilities
EMP Malacca Lalang Production
Platform
Ladinda Oil Storage Tanker
EMP Malacca Strait Platform
Processing Plant
13
Kangean PSC Production Facilities
Storage Tanks for Condensate
Pagerungan’s Gas Processing Facilities
LPG Mini Plant - 4
Jack up Rig & Drilling Facility
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
Thank You
16