Ramba Energy bags Jambi exploration right

Singapore Exchange-listed oil, gas firm Ramba Energy Limited announced on Monday that it has won a bid for an Operation Cooperation Agreement (KSO) offered by PT Pertamina EP on 8 October 2010 for the conduct of oil and gas exploration and production activities in the West Jambi Operation Area.

The West Jambi Operation Area (the ?West Jambi Block?) is located in the northern part of the prolific South Sumatra Basin. The geologic structure in the West Jambi Block consists of a bundle of Northwest ? Southeast trending anticlinal folds which are known to provide structural traps for oil and gas accumulations.

The West Jambi Block is surrounded by numerous producing fields for oil, gas and condensate, together with supporting pipelines, depots and other facilities, which among others, are operated by Petrochina, ConocoPhillips, Pearl Oil, Pertamina and Perusahaan Gas Negara, the Company said.

The Block is further interlaced with gas pipelines from neighboring fields; including a gas pipeline connecting PetroChina?s gas field in the Jabung Block to Singapore.

Preliminary technical studies based on geological and available seismic data has identified 5 leads within the West Jambi Block with total Estimated Original Gas in Place of approximately 4.1 Trillion Cubic Feet, it claimed.

?The Company intends to undertake a ?Market Driven exploration? which will evaluate the leads as part of the exploration process, together with the gas market in the region. This method combines the evaluation of gas supply and demand in the region and the current domestic political condition; together with the exploration process, which includes exploratory drilling, geological and geophysical (?G&G?) studies, and the performance of additional 2D and 3D seismic surveys. Each lead will be fully evaluated and confirmed by the results of the gas study, before each lead can become a drillable prospect,? it said.

Under the deal, Ramba will pay Pertamina US$1 million and provide an unconditional and irrevocable banker?s guarantee in the amount of US$3,030,000 in favor of Pertamina within 30 (thirty) days after the execution of the deal. (alex)