Mansek Medco Energi:Discovers additional oil in Libya ’s Area 47 (MEDC,Rp2,975, Buy,TP Rp3,500)

The company reported an additional oil discovery in Area 47,Libya.The discovery is the twelfth oil &gas discovery out of 17 wells drilled.This discovery will enhance the overall and ultimate potential in such block. Aside from that,PT Pertamina ’s President Director said that they will set up a joint venture with MEDC to develop an oil block in Libya.We view that both issues should have a positive impact to MEDC.Currently,the company is trading at EV/2P reserves of US$2.4/boe and US$3.9/boe,with or without Libya block in their portfolio.