Singapore firm acquires W. Java gas field

Singapore Exchange-listed firm Ramba Energy Limited announced that it has signed deal to acquire 70 percent interest in Jatirarangon TAC in Cikarang, West Java for US$9.7 million from Ellipse Energy Limited (EEL).

EEL operates Jatirarangon through its subsidiary

The Conditional Sale and Purchase Agreement was signed on September 3.

The Jatirarangon Field was brought into commercial production in October 2004.

The remaining unexpired term of the TAC is 11 years and it will expire in May 2020.

The Jatirarangon Field currently supplies gas to PT Perusahaan Gas Negara (Persero) (PGN) under a gas sale and purchase agreement which will expire in 2014.

EEL will also be entitled to a bonus earn-out payment of US$4 million if it is successful in its negotiation with PT Pertamina (Persero), PGN and other potential gas purchasers to increase average gas price sold from Jatirarangon Field to not less than US$4.25/mmBTU before 30 June 2010. Presently, gas is sold from Jatirarangon Field at US$2.55/mmBTU.

EEL is owned by Solstice Holdings Bermuda Limited and a private individual. (alex)