Giken Sakata Expands its Oilfield Assets Portfolio in Indonesia

• Substantial net revenue interest and rights to manage 70 additional wells
• The additional oil fields are expected to contribute to the Group’s earnings in FY2015
• Oil production from existing oil fields increased to 880 barrels of crude oil per day, up 31% in three months

The board of directors (“Board”) of Giken Sakata (S) Limited (“Giken Sakata” or together with its subsidiaries, the ”Group”), is pleased to announce that PT Cepu Sakti Energy (“PT CSE”), a subsidiary of the Group, has entered into two cooperation agreements (collectively known as the “Agreements”) with a local government-owned corporation based in Central Java, PT Sarana Patra Jateng (“PT SPJ”).

Main points of the press release as follows,
 

1. 2 New oilfields contains 70 additional wells
2. Cepu Sakti Energy, Giken’s subsidiary, has net revenue interest of 80% from the sales of oil that will be produced from the two oil fields. Far superior economics than typical Kerja Sama Operasi (KSOs – also known as Joint Ventures in Indonesia) and Profit Sharing Contracts (PSCs).
3. This 2 oil fields are expected to contribute to the Group’s earnings FY2015
4. Oil production has grown over 31% in the last 3 months. Currently, only 15 wells have been drilled and are producing and Cepu Sakti Energy has approximately 300 wells in total. As such, they can continue to ramp up their production.