Ramba secures third major investment in less than one month
Tuesday, May 19 2015 - 01:06 AM WIB
SGX-listed Ramba Energy Limited, an oil and gas exploration and production company with interests in Indonesia, announced Tuesday that the group has entered into an agreement with GSS Energy Sumatra Limited, a wholly-owned subsidiary of a SGX-listed company, GSS Energy Limited for an initial investment of up to US$5 million.
Ramba said in a statement that this marks the third major investment that the company has secured in less than one month, as the group has successfully raised approximately S$30 million in total funds, having previously completed a private share placement to Indonesian tycoon Tahir (one name) of the Mayapada Group, and a second placement to Hong Kong tycoon Albert Yeung of Empire Group and Indonesian businessman Harry Wangidjaja.
Funds raised from this latest investment will be used for Ramba?s exploration program at the West Jambi block, where Ramba plans to drill two exploration wells later this year.
The West Jambi block is an exploration block located in the Jambi sub-basin in southeastern Sumatra, Indonesia. A total of nine prospects and eight leads at the block have been independently studied for exploration potential.
An independent 2015 report from international petroleum consultancy DeGolyer & MacNaughton estimates the West Jambi block as holding gross contingent resources (3C) of approximately 23.1 million barrels of oil, 0.81 million barrels of condensate and 97 billion cubic feet of marketable gas, as at 31 December 2014.
Ramba said it has already carried out G&G studies at the block, and is currently completing the acquisition of 2D seismic.
The investor, SGX-listed GSS Energy became an active investor and operator in the oil and gas sector in September 2014, when it acquired interests in producing concessions in Indonesia. This came as an addition to its other core line of business, precision engineering. The company has a uniquely-focused Indonesia concession portfolio, as it has the operating rights to five oil fields in East and Central Java.
Commenting on the agreement, David Aditya Soeryadjaya, CEO of Ramba, said: ?I believe that this investment is a result of the recent improvements in the oil and gas industry, as evident in the Brent rallying to nearly US$70/barrel, a high point for 2015. This improving sentiment definitely benefits E&P companies such as Ramba.?
Editing by Reiner Simanjuntak