2009-03-26-2009-03-10-2009-03-10

Acquired 100% WI in 5,800 acres of East Cameron Block 316 in GOM, gaining 10 MMcfg/d (1,667 BOE/d), 13.9 Bcf 2P.

Medco Energi US LLC, LaFayette, La., a subsidiary of Indonesian company PT Medco Energi Internasional Tbk, has acquired East Cameron Block 316 in the Gulf of Mexico from Energy Resource Technology GOM Inc., a subsidiary of Helix Energy Solutions Inc., Houston, (NYSE: HLX) for $18 million. Medco Energi values the deal at $1.3 per MMBtu on proved plus probable reserves. The assets include 100% operated interest (83.33% net revenue interest) in the south addition of the block offshore Louisiana comprising 5,800 acres. The block contains two producing wells in depths of 200 feet. Production is processed at the East Cameron 318 platform, which is 75% owned by Medco Energi. Production is 10 million cubic feet of gas, or 1,667 barrels of oil equivalent, per day. Proved plus probable reserves are 13.9 billion cubic feet. East Cameron Block 316 is adjacent to Medco Energi's currently producing Blocks 317 and 318, both of which have platforms on them. Medco Energi President L. Dale Wooddy III says, "The acquisition will significantly increase our production and proven reserves. Additionally, we think the block has a lot of unrealized upside potential and will add several new drilling prospects to our exploration and development well inventory." He adds, "Although we've recently made a shift toward onshore properties, this acquisition shows our commitment to continue investing in the U.S. Gulf of Mexico shelf, especially where there is drilling upside and where we can leverage our existing asset base. We are convinced this area of the Gulf is both underexplored and underdeveloped, even at today's lower commodity prices." The effective date is Feb. 25. Medco Energi US operates in the Gulf of Mexico, Louisiana and Texas.