Ramba receives bids for minority stake in Lemang block

By Romel S. Gurky

SGX-listed Ramba Energy Limited announced Monday that it has received proposals from interested bidders for a minority stake in the Lemang block, which is located in South Sumatra.

?Following a comprehensive strategic review and robust due diligence process (which are still ongoing), Ramba has received proposals from interested bidders for the acquisition of the minority interest in the Lemang Block,? said Ramba Energy, which holds a 51 percent interest in the block through its local subsidiary PT Hexindo Gemilang Jaya.

?Ramba will continue to evaluate the proposals with the view of selecting the best bid which may eventually lead to the acquisition of the minority interest in Lemang Block,? it added.

Ramba in 2013 appointed PT Rothschild Indonesia and DMG & Partners Securities Pte Ltd as joint advisers to conduct a strategic review of its interest in the Lemang block in a bid to enhance value for the company and shareholders.

On April 13, Ramba announced the results of an independent evaluation of its oil and gas assets by RISC Operations Pty Ltd, focusing on the technical and commercial potential of Jatirarangon, Lemang, and West Jambi blocks.

According to the evaluation, based on a high-case scenario, oil production from the Lemang block is to peak at 57,000 bopd, and gas output at 101 mmscfd.

In January of this year, Ramba commenced well testing at the Akatara-2 appraisal well in the Lemang block in a bid to further prove up the Akatara structure for potential additional hydrocarbon resources. The Akatara-2 well is the third well at the Lemang block drilled and tested by the company, having successfully encountered hydrocarbon resources in previous exploration and appraisal drilling in the Lemang block.

Editing by Reiner Simanjuntak