31 July 2007 
Medco Energi  (MEDC IJ / MEDC.JK, OUTPERFORM - Maintained, RP4,225 -
Target: Rp6,650) 
Company update - Starting to anticipate Area 47 
by Robert Adair 

Medco's share price has strengthened over the past two weeks, with the
release of additional positive news on Area 47, Libya. Independent
certifiers DelGolyer & McNaughton are now finalising their initial
assessment of these reserves. This should be released by end-Aug 07 and
remains a near-term catalyst for Medco's share price. We believe Libyan
reserves are central both to any partial sale in Encore, and to the
valuation of a London listing of Medco's overseas oil and gas assets. We
have reduced FY07 estimates by 10% due to an expected one-off charge in
1H07 results, but have increased FY08-09 EPS estimates by 7-13% because
of higher crude oil price assumptions. This also raises our DCF-based
valuation for Medco to Rp6,650 (Rp5,471 previously). Maintain
Outperform.   

Full Report [ Click here
<http://www.gohdirect.com/NASApp/spaf/econtent/ind/MedcoEnergi-IND-31070
07.pdf>  ] 
or the URL below 
http://www.gohdirect.com/NASApp/spaf/econtent/ind/MedcoEnergi-IND-310700
7.pdf 


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