Ramba offers Risco Energy 25% interest in Lemang PSC

By Romel S. Gurky

SGX-listed Ramba Energy Limited announced Monday that it has on September 21 signed a binding letter of offer with Risco Energy Investments Holding Pte. Ltd. (REI) for the latter to acquire a 25 percent direct working interest in the Lemang production sharing contract (PSC), which is located in South Sumatra.

The two companies have agreed to enter into a three-month exclusivity period during which time REI will complete a due diligence process, while Ramba will secure the necessary regulatory and shareholders approvals for the proposed transaction, Ramba said in a statement.

?Under the terms of the offer letter, REI will pay a structured cash consideration of up to US$157.5 million for the direct purchase of a 25 percent direct working interest in the Lemang PSC on a cash-free, debt-free equivalent basis, based on an effective date of 1 January 2014,? the statement said.

Ramba via its Indonesian subsidiary PT Hexindo Gemilang Jaya holds a 51 percent interest in the Lemang PSC. The company announced in April that it has received interest from various bidders to acquire a minority stake in the PSC.

Editing by Reiner Simanjuntak