Ramba Energy clinches KSO deal with Pertamina EP

Singapore-listed Ramba Energy Limited through its wholly-owned unit Ramba Energy West Jambi Limited (REWJ) has finalized and entered into a operation cooperation agreement (KSO) with PT Pertamina EP on oil and gas exploration and production activities in the West Jambi Block over a period of 20 years.

Under the deal, signed on June 13, 2011 REWJ will hold 100% working interest in the KSO.

The West Jambi Block is located in Jambi province in the northern part of the prolific South Sumatra basin.

Based on the previous studies and available seismic data, the company is confident that the execution of the KSO will bring commercial benefit and opportunities to further expand and grow the company?s business in the oil and gas exploration and production sector.

In October 2010, the company reported that preliminary technical studies based on geological and available seismic data indicated the presence of five leads within the West Jambi Block with total estimated Original Gas in Place of approximately 4.1 trillion cubic feet, it claimed.

It said on October 18 that it intended 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, it said.

"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 on October 18.

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 days after the execution of the deal. (romel)