Ramba in talks with Petross over Jatirarangon block acquisition

Ramba Energy Limited, which is listed in the Singapore Stock Exchange, said that PT Petross Energy plans to acquire majority working interest at its Jatirarangon Block in West Java. The negotiations are underway.

?The company is currently in negotiations with Petross in respect of a draft Conditional Sale and Purchase Agreement (the CSPA) in relation to the proposed sale of all or a substantial portion of its interest in the Jatirarangon Block,? Ramba said.

Petross Energy President Director, Bagoes Hermanto said earlier that his company is interested to buy 70 percent working interest in the Jatirarangon Block for US$30 million. The source of funds will come from internal cashflow and bank loans. His statement was initially denied by Ramba Energy.

Ramba Energy said negotiations are subject to a Non-Disclosure Agreement (NDA) executed between the parties. Ramba said it is considering retaining a small interest in the Jatirarangon Block, as well as the operatorship.

Ramba noted that the discussions are still ?preliminary at this stage and there is no assurance that the transaction will actually proceed or that any definitive agreement will be reached.? Therefore, it asks shareholders to exercise caution.

Ramba Energy currently has a 70 percent stake in the block, while the remainder 30 percent is held by PT Wahana Sad Karya. (roffie/romel)