[Kabar-indonesia] 22 RI oil/gas/mining reports: LNG Supply Problems; Natuna; PGN; Adaro; Bumi

[JoyoNews at aol.com]

22 Reports:

- Pertamina President: LNG Supply 
  Problems To Last Until 2009
- Pertamina needs partner to develop
  Natuna gas field
- Indonesia govt aims to divest 5.31 pct
  stake in PGN by yearend - minister
- Indonesia PGN Gets Special Right 
  For Gas Transmission
- Platts: Pertamina in talks with investors on
  Central Sulawesi LNG project
- Indonesia's Adaro 'B+' rating affirmed 
  with stable outlook - S&P
- Indonesia's Medco Energi oil production now
  averaging 60,000 barrels per day
- Indonesia's Medco expects to start building
  300 MW Sarulla power plant next yr
- Indonesia's Medco Energi enters bio-energy
  business using own raw materials
- Bumi shares drop as trading halt partially
  lifted
- Indonesia's Bakrie Brothers lower on 
  concerns over Lapindo mudflow
- Stock Alert: Indonesia's Bumi Resources 
  kept 'sell' on surge in costs - Danareksa
- Indonesia's Bumi appoints Credit Suisse 
  to manage divestment - report
- Indonesia's Bumi Resources to delay
  producing CTL
- Platts: Pertamina likely to produce
  160,000-170,000 b/d of crude in 2006
- Indonesia changes term crude oil 
  imports for Q4
- update: Indonesia revises '06 oil price 
  budget forecast - MPs
- Indonesia ends term contract to lift
  Libyan crude
- Japan's Sumitomo to invest in Indonesian
  refinery after Sinopec pulls out
- Indonesia's Pertamina adds new tanker to
  its fleet
- Indonesia, Venezuela to sign MOU on
  oil refinery project
- Aquarian Gold Corp. to Acquire Indonesian
  Coal Properties

Pertamina President: LNG Supply Problems To Last Until 2009

SINGAPORE, September 7 (Dow Jones) -- Indonesia, which has 
occasionally asked liquefied natural gas buyers to accept fewer 
cargoes than contracted, may continue to face a supply shortage 
in the coming years, the head of state-owned Pertamina said 
Thursday.

"The shortage will become less only because of some contracts 
expiring in 2009, 2010 and 2011," said Pertamina President Ari 
Soemarno.

"As such, the current problem may last until 2009," he told an
industry conference in Singapore hosted by Conference Connections.

Soemarno said the gas shortage in Indonesia - the world's largest 
LNG exporter - started in 2001 after Pertamina had to declare force
majeure on LNG exports following unrest in Aceh.

Indonesia's domestic gas demand has also climbed at a time when
production growth has slowed because foreign investors are holding
back investments over production sharing terms.

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Pertamina needs partner to develop Natuna gas field

SINGAPORE, September 7 (Reuters) - Indonesian state oil firm Pertamina
will look for another international partner to develop the huge Natuna
gas field if the government terminates Exxon Mobil Corp.'s contract
next year, its chief said on Thursday.

"We would have to look for another partner -- it's difficult gas and
requires a huge amount of funds," Ari Soemarno, president and CEO of
Pertamina, said on the sidelines of an industry conference in
Singapore.

Indonesia's Energy Minister Purnomo Yusgiantoro said this week the
government might take over Natuna when Exxon Mobil's contract expires
in January, unless the oil major starts development.

Exxon has a 76 percent stake in D-Alpha while Pertamina has 24 percent.

"We are working with Exxon and we hope we can monetise the reserve in
not too long a time," Soemarno told the conference.

The Natuna D-Alpha block contains around 222 trillion cubic feet (tcf)
of gas, of which 46 tcf is thought to be commercially recoverable, but
the field contains about 70 percent carbon dioxide, making it
expensive to develop and difficult to sell. Asia's sole OPEC member is
trying to phase out costly oil-fired power and use more cleaner gas.
But it faces limited supplies due to long-term LNG export contracts,
which it is reviewing, and so is looking for speedier reserve
development. "Current (supply) problems may last to 2009," he said.

Analysts said Pertamina might be unlikely to terminate the Natuna
contract so soon after a five-year row with Exxon over operatorship of
the $2.6 billion Cepu oilfield, resolved in March.

"The government still expects us to start production (on Cepu) by
2009, but with the present situation on equipment delivery and
contractor loads there may be some delays," Soemarno said.

-------------------------------------------------------

Indonesia govt aims to divest 5.31 pct stake in PGN by yearend - minister

JAKARTA, September 7 (XFN-ASIA) - State Enterprise Minister Sugiharto
said the government targets to divest a 5.31 pct stake in gas
distributor PT Perusahaan Gas Negara (PGN) by the end of 2006 to meet
this year's privatisation target of 3 trln rupiah.

"A further divestment of PGN should be done by the end of this year,"
Sugiharto told reporters.

Sugiharto confirmed reports that the government was planning to sell a
5. 31 pct stake in PGN out of its controlling 60 pct interest in the
company.

"Yes, that's the portion of shares that will be sold. That has been
set even by the previous government," Sugiharto added.

PGN's stake sale was originally planned for last year but was
postponed after the government managed to raise funds from other
revenue sources to cover last year's state budget deficit.

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Indonesia PGN Gets Special Right For Gas Transmission

JAKARTA, September 6 (Dow Jones)--Indonesia's state-owned Perusahaan
Gas Negara (PGAS.JK) has been awarded with "special rights" to manage
the existing Cirebon-Karawang-Jakarta-Palembang natural gas
transmission pipeline, said the downstream oil and gas regulator BPH
Migas late Tuesday.

"The awarding of the special right...is meant to give legal
certainties to investors," BPH Migas said in a press release.

The holder of the right can lease the pipelines to other companies,
the body said, without elaborating.

Beside PGN, BPH Migas also granted special rights to PT Energasindo
Heksa Karya for gas distribution in Cilegon area.

----------------------------------------------------

Platts Commodity News
September 7, 2006

Pertamina in talks with investors on Central Sulawesi LNG project

Indonesia's Pertamina has held discussions with several potential
investors on a proposed 2-million mt/year LNG project in Central
Sulawesi, the state-owned company's president-director Ari Soermano
said Thursday,

The project has generated a lot of interest and investors are ready,
Soermano said on the sidelines of an LNG conference in Singapore. It
was just a matter of which investor Pertamina chose, he added.

Pertamina has teamed up with private Indonesian oil and gas company
Medco Energi on the small-scale LNG project but has said it would
prefer external funding for the project. The companies have been in
talks with Australian niche LNG player Liquefied Natural Gas Limited
to participate in the project.

Construction of the project is expected to start in early 2007 with
first LNG production targeted for 2009. The plant is expected to cost
between $500-600 million and will receive gas from the 2 Tcf Donggi
field.

Separately, Soermano said he was optimistic the company would gain
approval to export LNG from the plant.

Faced with a domestic gas supply crunch, Indonesia has been actively
pursuing a policy of diverting gas sources away from LNG to local
fertilizer and power companies.

-------------------------------------

Indonesia's Adaro 'B+' rating affirmed with stable outlook - S&P

JAKARTA, September 7 (XFN-ASIA) - Standard & Poor's Ratings Services
(S&P) said it has affirmed its 'B+' corporate credit rating on coal
producer PT Adaro Indonesia with stable outlook.

At the same time, Standard & Poor's said it has affirmed its B+ rating
on the senior secured notes issued by its wholly-owned subsidiary,
Adaro Finance BV. The issue is unconditionally and irrevocably
guaranteed by Adaro, and its related company, PT Indonesia Bulk
Terminal (IBT), it added.

Adaro had total assets of 1.4 bln usd at of end-March. It is the
largest single-mine coal producer in Indonesia, with capacity of 38
mln tons per year in 2006 and reserves of at least 14 years.

'The rating on Adaro factors in its aggressive, but improving,
financial profile, inherent industry risks, and the uncertain
regulatory environment for Indonesia's mining industry,' said S&P
credit analyst Yasmin Wirjawan.

'These weaknesses are, however, partially offset by Adaro's low-cost
profile, secured supply and price contracts, adequate reserve life and
limited currency risk.'

---------------------------------

Indonesia's Medco Energi oil production now averaging 60,000 barrels per day

JAKARTA, September 7 (XFN-ASIA) - PT Medco Energi said its oil
production now averages 60,000 barrels per day (bpd), slightly higher
than last year's 57,000 bpd.

Medco Energi corporate secretary Andy Caramoy told reporters the said
output has yet to include production from its oil field in Oman, which
has begun producing oil since August this year at a rate of 18,000
barrels per day.

Karamoy also said the company may participate in the government's
ongoing tender of 41 new oil and gas fields.

"We are still considering it. We have set up a special team to study
whether we'll take part in the tender or not," he said.

Earlier, Luluk Sumiarso, director general for oil and gas at the
Energy Ministry, said the government has begun the disposal of 41 oil
and gas blocks starting Aug 28.

Of these oil blocks, 21 will be disposed via direct offer and the rest
will be sold through a regular tender process. The blocks for sale
include 12 new areas and eight sites that were previously offered but
not taken up.

-----------------------------------------------------

Indonesia's Medco expects to start building 300 MW Sarulla power plant next yr

JAKARTA, September 7 (XFN-ASIA) - PT Medco Energi International said
it expects to begin building the 300 MW Sarulla geothermal power plant
in the North Tapanuli district of North Sumatra next year.

"We expect to start construction at the earliest [possible time] next
year," Medco Energi corporate secretary Andy Karamoy told reportes.

He said the company is now awaiting the signing agreement with
state-owned Perusahaan Listrik Negara (PLN) before starting the
project.

Medco, together with other consortium members Ormat Technologies and
Itochu Corp, had earlier received a preliminary mandate from PLN to
build the power plant.

The Medco consortium replaced the original winning bidder Geo Dipa,
jointly owned by PLN and state-run oil and gas firm PT Pertamina,
after the latter recently pulled out of the project.

-------------------------------------------------------

Indonesia's Medco Energi enters bio-energy business using own raw materials

JAKARTA, September 7 (XFN-ASIA) - Oil-and-gas firm PT Medco Energi
International said it is now expanding into the bio-energy sector by
developing bio-ethanol and bio-diesel fuel from raw materials coming
from its own palm plantations.

"We have just set up a bio-ethanol plant (Medco Ethanol) in Lampung,
South Sumatra, which has a capacity of 60,000 kiloliters of ethanol,
using cassava as raw material," the company's corporate secretary Andy
Karamoy told reporters.

He said the ethanol product is currently sold to industries.

The company will also further develop its bio-diesel plantations, it
said, adding that it already has 25,000 hectares of oil palm
plantation located in South Kalimantan.

"The oil palms are now 2-3 years old. We need 3-4 more years before
the oil palms mature and get processed into bio-diesel," he said.

"We have actually produced bio-diesel in small amounts for our own
use," he added.

---------------------------------------------------------

Bumi shares drop as trading halt partially lifted

JAKARTA, September 7 (Reuters) - Shares in Indonesian miner PT Bumi
Resources Tbk fell as much as 7 percent on Thursday as investors got
their first chance to trade since it scrapped a $3.2 billion coal mine
sale in late August.

Trading in Bumi shares in the open market, halted on Aug. 24, remained
closed, but in the negotiated market, the stock traded between 700 and
720 rupiah a share, down from 750, and with more than 7 million shares
exchanging hands.

The resumption follows confirmation from the company on Wednesday that
one of the mines in the abandoned sale deal will produce less this
year due to flooding, and that Bumi's 2006 profits will fall short of
analysts' expectations.

Bumi had planned to sell the two mines to Borneo Lumbung, an affiliate
of Indonesian bank Renaissance Capital.

According to sources familiar with the plan, the deal collapsed
because the buyer's creditors got worried about the impact of floods
on mine output. Bumi has since said it now plans to sell a minority
stake in the mines.

On Wednesday, Bumi said production from its largest coal mine, PT
Kaltim Prima Coal (KPC), should rise 30.5 percent to 36.8 million
tonnes this year, but output from the flood-hit mine, -- PT Arutmin
Indonesia -- would fall 13.8 percent to 14.4 million tonnes.

The company said it expected its earnings before interest, tax,
depreciation and amortisation (EBITDA) to be $330-370 million in 2006
before soaring to $600-630 million next year.

Analysts polled in Reuters Estimates predict the company will post an
EBITDA of 4.53 trillion rupiah ($497.5 million) this year and 4.44
trillion ($483.2 million) in 2007, putting the company's own 2006
profit prediction well below analysts forecasts, but its 2007
projection much higher.

Bumi has said the scrapping of the mine sale would not affect its
plans to buy sister company, PT Energi Mega Persada Tbk . At 700
rupiah per Bumi share the one-for-one share deal values Energi at
about $1.1 billion. The exchange <.JKSE> did not say when it would
lift the ban on trading Bumi shares in the regular market.

-----------------------------------------------------------

Indonesia's Bakrie Brothers lower on concerns over Lapindo mudflow

JAKARTA, September 7 (XFN-ASIA) - Shares in PT Bakrie Brothers were
lower in heavy midmorning trade on concern over the rising social
costs brought about by the hot mudflow at the Lapindo Brantas well in
East Java, dealers said.

At 11.01 am, Bakrie Brothers was down 5 rupiah at 150 on 128.96 mln
shares, the top traded stock by volume.

The composite index was down 3.449 points at 1,469.114.

PT Energi Mega, which wholly owns Lapindo Brantas, earlier said it was
going to sell Lapindo to the Bakrie Group. The sale would pave the way
for the merger of Energi Mega and Bumi Resources, both affiliates of
the Bakrie Group.

Energi Mega said it has spent approximately 20 mln usd so far to stop
the hot mudflow and pay compensation to affected villagers nearby.

"Investors are concerned over the likely rise of the social costs of
the Lapindo mudflow . The case has dampened investor sentiment in
Bakrie-related stocks," Luki Aryapama, an analyst with Panin Capital
said.

He said it has prompted some investors to switch from Bakrie
Brothers-related shares to other stocks that offer more potential,
such as diversified group Bimantara.

------------------------------------------------------------

Indonesia's Bumi Resources kept 'sell' on surge in costs - Danareksa

JAKARTA, September 7 (XFN-ASIA) - Danareksa is keeping its "sell"
recommendation on Indonesian coal giant PT Bumi Resources, with a
yearend target price of 600 rupiah, due to the company's
higher-than-expected production costs, Danareksa analyst Isnaputra
Iskandar said in a research report.

Danareksa released its report on Bumi Resources today following an
analyst meeting yesterday.

The state-run investment bank's target price for Bumi is 20 pct below
Bumi's Aug 24 closing level of 750 rupiah.

The stock has been suspended from trading since then after Bumi
cancelled a 3.2 bln usd deal to divest its two coal producing units.

Iskandar said his house is going to adjust their earnings forecasts
for Bumi given the bigger- than-expected rise in its production costs.

Danareksa had previously estimated Bumi's net profit this year would
grow to 2.16 trln rupiah from 1.22 trln last year, on sales of 16.01
trln against 15.92 trln.

But Bumi's production costs surged to 30.1 usd per ton in the second
quarter from 26.8 usd per ton in the first quarter, Iskandar noted,
much higher than his previous estimate of about 20 usd per ton.

He said the sharp rise in cash costs was mostly driven by higher fuel
costs and a higher stripping ratio (10:1) due to the commencement of
the Bengalon, Bendili and Pit-J mines.

Fuel costs now represent 21.2 pct of total production cash costs, he said.

Iskandar said management expects the stripping ratio to go down to 8:1
in the second half, dragging down cash costs to 25-26 usd/ton. As a
result, the full-year cash cost is predicted to reach 27.1 usd against
26.4 usd last year, with the coal selling price seen at 40.1 usd per
ton.

Danareksa also noted that management's full-year estimate for earnings
before interest, tax, depreciation and amortization (EBITDA) of
330-370 mln usd seems 'too optimistic'.

Bumi also expectes to see EBITDA rise further to 600-630 mln usd in
2007 due to higher sales volume, a lower stripping ratio and better
price realization.

----------------------------------------------------------

Indonesia's Bumi appoints Credit Suisse to manage divestment - report

JAKARTA, September 7 (XFN-ASIA) - Coal firm PT Bumi Resources has
appointed Credit Suisse to manage the planned sale of a combined 20
pct stake in its two coal producing units, PT Kaltim Prima Coal and PT
Artumin Indonesia, Bisnis Indonesia reported.

'We have appointed Credit Suisse to help Bumi find strategic
investors,' Bisnis quoted Bumi president Ari Hudaya as saying. He did
not provide details of the size of the stake in each unit to be put up
for sale.

The report said investors that have expressed an interest in the
shares include US hedge fund Farallon Capital and the Rajawali Group.

Last month, Bumi cancelled a plan to sell its total holdings in the
two units after the buyer asked for an extension of time to make
payment. Bumi had been planning to sell its 95 pct stake in Kaltim
Prima Coal and a 100 pct stake in Arutmin Indonesia.

-----------------------------------------------------------

Indonesia's Bumi Resources to delay producing CTL

JAKARTA, September 7 (Asia Pulse/Antara) - Publicly listed coal
company PT Bumi Resources (JSX:BUMI) said it will delay its plan to
produce liquid coal (CTL) as the raw material is not yet available.

"The technology is available and can be bought but CTL production
needs coal with the same quality for feedstock," Bumi President Ari S.
Hudaya said.

The implementation of the plan is slightly delayed, Hudaya said,
adding that in the next six months Bumi will acquire a coal mine to
feed the coal liquefaction plant.

He said Bumi will pay US$3 million for the coal mine of Pendopo Energi
Batubara to supply up to 20 million tons of coal a year to produce
8,000 barrels of liquid coal per day.

He said with the CTL project, expected to be operational in the next
four years, Bumi hopes to see a five-fold increase in its income.

------------------------------------------------------------

Platts Commodity News
September 7, 2006

Pertamina likely to produce 160,000-170,000 b/d of crude in 2006

Indonesia's Pertamina expects to produce 160,000-170,000 b/d crude
this year, the state-owned company's president-director Ari Soemarno
said Thursday.

"But we have a very aggressive plan to make a significant improvement.
We expect that we can try to double production within two to three
years time," Soemarno said on the sidelines of an LNG conference in
Singapore.

Soemarno's estimates are higher than earlier projected figures of 149,000 b/d.

Meanwhile, the official noted that work on the Cepu oil and gas block
in Java was progressing and the government expected Pertamina and
ExxonMobil to start production by early-2009.

There is no lack of will to progress the project but that there may be
some delays due to constraints on equipment supply and delivery and
limitations on contractor availability, he said.

Cepu is expected to commence production at 25-40,000 b/d. The block,
straddling the border between Central Java and East Java, is estimated
to contain about 600 million barrels of oil and 1.7 trillion cu ft of
gas resources.

Banyu Urip, the block's major oil discovery, is estimated to contain
more than 250 million barrels of oil, and is thought capable of
165,000 b/d of peak production.

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Indonesia changes term crude oil imports for Q4

By Maryelle Demongeot

SINGAPORE, September 6 (Reuters) - Indonesia's Pertamina will buy
450,000 barrels a month of Chinese Wenchang crude oil and 600,000
barrels of Sudanese Nile Blend grade in the fourth quarter under term
contracts, a source close to the deals said on Wednesday.

The new term purchases will compensate for the loss of 1 million
barrels a month of Libyan Sarir crude after Pertamina decided to
terminate its contract by the end of the third quarter.

"Sarir is not very good for the refineries," the source said. The
Sarir contract was due to end in December after having started in
April, but the last cargo will be delivered in September.

This might be the first time the state oil company buys Nile Blend
crude. Sellers and price details had yet to emerge.

Heavy sweet Nile Blend crude was last seen trading at record-low
discounts of close to $6 a barrel to Minas Indonesia Crude Price
(ICP), which may have whetted Pertamina's appetite for the grade.

The grade is similar to Indonesia' usual staple of domestic crudes,
whose output is on the decline. The crude will head to the Balongan
refinery, the source added.

Indonesian crude oil production fell again in August, extending
successive drops to the lowest level in more than three decades, an
official said this week.

Indonesia pumped 860,500 barrels per day (bpd) in August, down from
887,000 bpd of crude in July.

The country earlier signed term contracts for 2006 for at least 6.4
million barrels of crude, with most contracts running from April.

Term contracts, together with high oil inventories and vessel issues,
have prompted Indonesia to cut purchases through spot tenders this
year.

State oil company Pertamina bought 1.8 million barrels of
October-arrival crude in its last tender, and did not buy any spot
crude in the two previous months.

Pertamina's spot purchases have sharply fallen from this year's high
of 6.18 million barrels for February arrival.

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Indonesia revises '06 oil price budget forecast-MPs

JAKARTA, September 6 (Reuters) - The Indonesian government and a
parlimentary working committee agreed on Wednesday to revise the
average oil price assumption for this year's budget to $64 per barrel
from a previous forecast of $62 due to high global oil prices.

Final approval will need to be given at a full parliamentary session.

"Our assumption is based on the high demand of crude oil due to the
strong economies in China and India," a parliamentary committee
overseeing budget affairs said in a statement.

It added that political tensions in some oil producing countries such
as Iran and Iraq was also part of the reason behind the decision to
revise up the oil price forecast.

---------------------------------------------------------

Indonesia ends term contract to lift Libyan crude

SINGAPORE, September 6 (Reuters) - Indonesia's Pertamina will end its
term contract to lift 1 million barrels of Libyan Sarir crude for
October-delivery onwards, with the last cargo to be delivered in
September, a source close to the deal said on Wednesday.

The state oil company decided to stop buying the grade as it did not
fit its refinery requirements, the source said.

"Sarir is not very good for the refineries," the source said.

The contract was due to run until December.

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Japan's Sumitomo to invest in Indonesian refinery after Sinopec pulls out

JAKARTA, September 6 (XFN-ASIA) - PT Elnusa Holding said Japan's
Sumitomo Corp has agreed to take a 20 pct share in the estimated 3 bln
usd cost of an oil refinery project in Indonesia following the
withdrawal of China Petroleum & Chemical Corp (Sinopec), company
president Rudy Radjab said.

Radjab told reporters that Sinopec withdrew from the project after it
failed to secure a 51 pct stake.

Other investors in the refinery are Elnusa Holding with a 30 pct
stake, and the National Iranian Oil Refining and Distribution Company
and Petroleos de Venezuela SA with 25 pct interest each, he said.

The refinery, which will have capacity of 300,000 barrels of oil per
day, will be built either in Tuban, East Java or Cilegon in Banten
province, West Java.

Radjab said about 70 pct of the refinery's output will be exported
while the rest will be sold domestically.

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Indonesia's Pertamina adds new tanker to its fleet

JAKARTA, September 6 (XFN-ASIA) - State-owned oil and gas company PT
Pertamina said it has added a new tanker, the MT Pegaden with a load
capacity of 17,500 long tons, to its fleet in a move designed to
improve its capacity to distribute fuel throughout the Indonesian
archipelago, a company official said.

"The operation of this mother tanker will support Pertamina's
operations in distributing fuel to the domestic market," Pertamina's
marketing director Ahmad Faisal said.

The tanker was Pertamina's 36th, but Faisal, did not disclose whether
it was paid for in cash or leased.

Faisal noted that Pertamina is planning to upgrade its fleet to meet
the International Maritime Organization's requirement, prohibiting the
operation of single-hulled oil tankers from January 1, 2007.

To this purpose, Pertamina, later this year, will open a tender for 6
new oil tankers, he said.

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Indonesia, Venezuela to sign MOU on oil refinery project

JAKARTA, September 6 (Asia Pulse/Antara) - Indonesia and Venezuela
will sign a memorandum of understanding for the construction of a US$4
billion oil refinery in the country when OPEC holds a meeting in
Vienna on Sept. 12.

Japan's Sumitomo Group will also be involved in the construction of
the refinery in a location yet to be determined most likely in Tuban
of East Java, Banten or West Java, PT Elnusa , a subsidiary of state
oil and gas company Pertamina, said. .

PT Elnusa and Petroleos de Venezuela SA (PDVSA) will sign the MOU
before the oil ministers of the two countries, Elnusa President Rudy
Radjab said.

The project with a processing capacity of 300,000 barrels a day, will
be 30 per cent owned by Elnusa and Pertamina, 25 per cent by National
Iranian Oil Refining and Distribution Company, 25 per cent by PDVSA
and 20 per cent by Sumitomo.

Marubeni will be the off-taker for 70 per cent of the output of the
refinery, a position earlier offered to China

Rudy said 70 per cent of the cost will be in loan and Japan Bank for
International Cooperation has offered to provide 70 per cent of the
loan.

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Market Wire
September 7, 2006
Press Release

Aquarian Gold Corp. to Acquire Indonesian Coal Properties

TORONTO -- Aquarian Gold Corp. (PINKSHEETS: AQGC) ("Aquarian") is
pleased to announce it has signed a Letter of Intent to acquire
Indonesian coal properties in the Riau coal basin of Sumatra covering
approximately 52,000 hectares.

Aquarian will begin studies of the area and will follow up with a
program of shallow drilling to expand and delineate extensions and
repetitions of the existing coal resource. Geological reports on the
property describe the potential as 'world class' and indicate the
possibility of very substantial reserves of coal with low overburden
and available infrastructure to a navigable tidal river.

The three main Sumatran coal basins have been significant producers of
coal for over a century and contain the bulk of Indonesia's known coal
resources. Studies, including one commissioned for this project,
evidence a growing demand from the Chinese power generating industry
for Indonesian coal.

Under the terms of the Letter of Intent, Aquarian will issue common
shares to the present owners of the Bellmin group for the acquisition
of these properties.

Aquarian will be commencing its due diligence immediately in respect
to this acquisition and upon satisfactory results execute a final
agreement.

Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995: This news release contains forward-looking information
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, including statements that include the words "believes,"
"expects," "anticipate" or similar expressions. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause the actual results, performance or achievements
of the company to differ materially from those expressed or implied by
such forward-looking statements. In addition, description of anyone's
past success, either financial or strategic, is no guarantee of future
success. This news release speaks as of the date first set forth above
and the company assumes no responsibility to update the information
included herein for events occurring after the date hereof.

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Joyo Indonesia News Service
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