CityView Corporation, along with partner, PT Medco Energi Internasional (Medco), has signed a Memorandum of Understanding (MOU) to supply gas to PT Pembagkitan Jawa Bali (PJB) for 15 years.
The MOU is contingent on proving sufficient resources and production over a 15-year period.
Medco said the contract is equivalent to supplying 20 million cubic feet per day to the Gas Powered Electricity Plant installation in Sebaya owned by PJB. The gas supply has been intended to provide the electrical power supply in East Java, especially in Madura Island.
The gas supply would come from Sebaya Field, Madura Block, with the contract valued at US$260 million over 15 years starting in 2006.
CityView cautioned against the value attributed to the contract by Medco. “The estimated value and reserves are furnished to CityView by the Operating Shareholder and have not been verified in accordance with any relevant Australian Stock Exchange Listing rules. CityView is releasing this information in good faith but advises investors not to rely on same,” said a company statement.
At the same time Medco, sans Cityview, has also signed a larger 100 million cubic feet per day gas supply contract with Perusahan Gas Negara (PGN) over 11 years. The deal is thought to be worth around US$770 million and will begin in 2006.
