Sugih Energy acquires Lemang block

PT Sugih Energy Tbk has taken over the ownership of Eastwin Global Investment Limited, which has a 49 working interest in the Lemang oil and gas block, Investor Daily reported.

With the acquisition of Eastwin, Sugih Energy will affectively controls a 49 working interest in the Lemang oil and gas block, which covers 3,890 sq kilometers of areas, Sugih Energy?s president director Fachmi Zarkasy said in Jakarta on Thursday.

The remaining 51 percent of the ownership in the Lemang block is controlled by PT Hexindo Gemilang Jaya, a subsidiary of Ramba Energy Limited. Hexindo operates the Lemang block under a production sharing contract (PSC) which will last until 2037.

?According to the valuation of the Roots Capital, the value of the Eastwin Global is US$230 million,? Fachmi said. He, however, said that his company would also hire an independent appraiser to assess the actual value of the Eastwin?s shares.

He said that his company planned to launch a rights issue next year to raise funds worth about Rp 3 trillion for acquisition plan. ?The funds will be used to acquire a number of oil and gas blocks and to increase working capital,? he added. (*)