Mandiri Sekuritas 2 investors are targeting Jeruk asset for some US$180mn (MEDC,

Company indicates that 2 investors are interested to acquire Jeruk asset for some US$180mn. Note that the company has previously taken out Jeruk asset from the remaining asset to be divested, considering its economic interest rather than working interest. The possible acquisition price is similar to company’s valuation on the particular asset, thus they may not book any gain from this transaction. We have not factored in
such action in our forecast, nor included the asset in MEDC’s overall 2P reserves. The company also mentioned that they may postpone the divestment plan of Rimau and Bawean blocks, which previously targeted to be carried out this year. MEDC is currently trading at EV/2P of US$2.6/boe. Note that we have not included Libya asset reserves in our calculation as well. Adding the reserves from Libya will result into lower EV/2P of US$1.8/boe.