Jakarta,-PT Energi Mega Persada Tbk (ENRG) has budgeted a capital expenditure (capex) of USD 150 million for 2024 to be allocated for drilling activities, where these activities will be focused on increasing oil and gas reserves.

Director and Chief Investor Relations Officer of ENRG, Herwin W. Hidayat said that the realization of the company's capex throughout 2023 is around USD 125 million. The capex target in 2024 is around USD 150 million.

"This means that there is an increase of around 20% for the company's capex from 2023 to 2024," Herwin told KONTAN, Friday (26/4).

This oil and gas issuer affiliated with the Bakrie Group targets oil and gas production to increase by 10% - 15% or around 37-38 thousand barrels equivalent per day in 2024.

Herwin said, that throughout 2023, ENRG managed to produce around 5,700 barrels of oil per day and 164 million cubic feet of gas per day from oil and gas assets operated by the company.

"In 2024, we hope to increase our oil and gas production by 10-15% from last year," Herwin said.

He said, to keep in mind that in addition to production growth from existing assets (organic growth), ENRG is also in the process of acquiring two oil assets in Riau, Sumatra.

Both of these assets are produced commercially and it is expected that this acquisition process can be completed in the first half of 2024.

Furthermore, Herwin said, currently more than 90% of oil and gas production comes from four assets operated by ENRG, namely Bentu gas assets (Riau), Kangean gas assets (East Java), Malacca oil assets (Riau), and Sengkang gas assets (South Sulawesi).

The plan, said Herwin, this year focuses on optimizing oil and gas production from the four assets. Furthermore, it will also drill in exploration and development wells, as well as mapping the location of oil and gas reserves in other assets such as Tonga and Gebang (both in North Sumatra), Korinci Baru (Riau), Working Area-B (Aceh), and others.

Sources : djakarta-miningclub.com May 03.24