Ramba talking with other parties on West Jambi investment and Lemang farm-out

By Romel S. Gurky

SGX-listed Ramba Energy Limited announced on Wednesday that it is currently in discussion with a party for a potential investment into its drilling operations at its West Jambi KSO block in South Sumatra.

Separately, the company is also in discussion with other parties for a potential farming-out of part of the company?s working interest in Lemang PSC, held via its Indonesian subsidiary PT Hexindo Gemilang Jaya.

Such discussions may or may not lead to an investment into the aforesaid drilling operations or a farm-out.

?The company understands that these discussions remain ongoing and no binding agreement has been reached. As such, there is no assurance that any transaction will actually materialize,? it said.

Lemang PSC has daily production of approximately 53,000 barrel oil per day (bopd). Based on volumetric study conducted by international petroleum expert De Golyer & Mac Naughton (D & M), the Lemang Blocks has an estimated 511 million barrels of oil and 467 cubic feet of gas (gross recoverable prospective resources).

Ramba through Hexindo Gemilang serves as operator in Lemang PSC with a 51 participating interest in paratnership wth Sugih Energy which has 49% participating interest through its subsidiary Eastwin Global Investment Ltd.

The West Jambi KSO block is wholly owned by Ramba. In June 2011, Ramba Energy executed a KSO agreement with Pertamina, giving the company the rights to explore and exploit the asset for 20 years.

Editing by Johannes Simbolon