Medco has now completed the land acquisition for the drill site and is currently finalising the various contracts for the drilling of the proposed delineation well, Sebaya-2.

Additionally Medco has advised it has had discussions with the national power company, PLN, and is reasonably confident of securing a Memorandum of Understanding for the supply of gas to the Gili power plant on Madura Island by the end of June 2004.

The work program and budget for the drilling of a second proposed delineation well on the Sebaya prospect, which is contingent on the success of Sebaya-2, is also being prepared.