Singapore firm acquires stake in Sumatra exploration block

Singapore Exchange-listed firm Ramba Energy Limited announced on Tuesday that it has signed conditional deal to acquire 41% participating interest in Lemang PSC, onshore Sumatra for US$7 million from PT Indelberg Indonesia.

The Lemang block, which is a green field exploration block, was awarded to Hexindo-Indelberg consortium in early 2007. The remainder of the interest is held by Hexindo, an Indonesia-based oil, gas services company.

The Block is approximately 3,890 km2 in size and is located on-shore within Riau Province. The block is part of the Jambi Sub-Basin which represents the northern flank of the South Sumatera Basin. It is bounded in the south by the Jabung Block which is producing and operated by PetroChina.

Based on a report on the technical due diligence exercise undertaken by Hexindo and Bandung Institute of Technology, the block is expected to have Original Oil in Place in the amount of 189 MMBO and Original Gas in Place in the amount of 179 BCF.(denny)