Publicly listed oil service company PT Ratu Prabu Energi is considering a rights issue to generate around Rp 300 billion (US$31.6 million) in the first semester of 2010 to partially finance its required capital expenditure for next year.
President director Burhanuddin Bur Maras said in a public expose Monday that three securities firms, two state-owned and one privately run, are currently subject to a beauty contest to be the underwriter.
The company is also in talks with a standby buyer candidate, a European oil and gas company, he said.
Ratu Prabu finance director Gemilang Zaharin said the rights issue was intended to support
the company’s capital expenditure in 2010, targeted to reach Rp 400 billion.
“Other options include bank loans or a secondary public offering,” he said.
Gemilang said the company would spend $17 million on exploration and infrastructure to develop copper and gold concessions in Central Kalimantan, previously owned by PT Pacific Masao Mineral.
This purchase, two months ago, expanded Ratu Prabu’s business into copper and gold mining.
Gemilang, did not however disclose the acquisition price.
Around $10 million of this capital expenditure will finance oil exploration in the Cirebon field, West Java, where an oil reserve with a production capacity of 400 barrels per day (bpd) was found in November.
“We are hoping to open a new well in Cirebon next year and to increase our production to 1,000 to 1,500 bpd,” he said.
Ratu Prabu is targeting its revenue to reach Rp 600 billion by the end of 2010.
This year’s revenue is predicted to reach Rp 400 billion, down from Rp 514 billion recorded in the previous year.
“The company lost a significant amount of revenue this year partly because we had a contract in an oil and gas block in South Sumatra which ended in April,” he said.
Three fields in that location had an oil production capacity of 2,700 bpd and gas production capacity of 4 million cubic feet per day.
“That business contributed 45 percent of our revenue.” (adh)
