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Financial Forecasts
From time to time, PT Energi Mega Persada Tbk. publishes production and financial forecasts (see "Press Releases"). Such forecasts depend on a range of factors, including the following:
PRODUCTION RATES FROM EXISTING FIELDS - these can be predicted using geophysical and geological information within a reasonably narrow range of accuracy.
TIMING OF START-UP OF NEW PROJECTS - this factor is critical to achieving the forecast production profile, but is unlikely to influence our overall financial forecast very significantly.
OIL AND GAS PRICES - the precise relationship between oil and gas prices and the revenues obtained from production is complex due to the different fiscal regimes employed worldwide, and the different relationships between oil and gas prices. An increase in prices will result in a corresponding increase in our financial forecast.
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UNSUCCESSFUL EXPLORATION - where the cost of dry holes in exploration licenses is written off in the year of drilling. An exploration write-off will impact negatively on our financial forecast.
PT Energi Mega Persada Tbk. believes that an oil and gas portfolio should be a balance of producing properties, development projects and exploration acreage. This mix results in a portfolio with equal exposure to the full spectrum of risk and reward. First and foremost the strategy defines the portfolio, not vice versa. PT Energi Mega Persada Tbk.’s current strategy is to increase its exposure to natural gas exploration that can be commercialized quickly.
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