Sugih Energy sets capital expenditure at Rp 400b
The Jakarta Post, Jakarta | Wed, 02/01/2012 9:56 AM
Publicly listed oil and gas explorer PT Sugih Energy is planning to spend around Rp 400 billion (US$44 million) on capital expenditure this year.
“Most of the expenditure would be channeled for the exploration and operating expenses of Lemang oil and gas block in Jambi,” Sugih Energy director Andhika Anindyaguna said during his company public expose here on Tuesday.
Sugih Energy recently announced that it would purchase a 49 percent stake in the Lemang oil onshore block from Eastwin Global Investment Ltd. for around $230 million. PT Hexindo Gemilang Jaya owns a 51 percent stake in the Lemang block, which has an area of 3,980 square kilometers.
The acquisition and capital expenditure would be financed by a planned rights issue next month, Andhika said. Sugih is planning to carry out a rights issue to reap up to Rp 3 trillion.
Sugih Energy president director Fachmi Zarkasi said that several overseas buyers were ready to take up shares offered during the company’s right issue.
“One of the standby buyers who has already confirmed their interest in absorbing Sugih Energy’s shares, is a US-based investment company called Jupiter Capital,” Fachmi said.
He said that Lemang would help the company improve its performance.
In an audited financial statement, Sugih Energy reported Rp 18.21 billion in revenue in the first nine months of 2011. Sugih’s revenue consisted of Rp 800 million in sales to PT Hexindo Gemilang Jaya and Rp 17.41 billion to Richland Logistics Indonesia.
However, operating expenses of Rp 22.6 billion led the company to suffer a net loss of Rp 4.61 billion in the first nine months of 2011. The company, which changed its name to Sugih Energy in 2010 from PT Sugi Samapersada, also suffered a net loss of Rp 3.78 billion in the first nine months of 2010.
Fachmi said that the company would likely report a net loss in this full year financial statement, but expected a financial contribution from Lemang.
The Lemang block is in the exploration stage and is expected to start production in the fourth quarter of 2012. Lemang resources are estimated to reach 511.2 million barrels of oil and 467.8 million cubic feet of gas.
Besides contribution from Lemang, Sugih Energy is targeting to reap more as the company is planning to acquire two more oil and gas blocks in Sumatra this year. (rcf)
