Verona to invest US$8 million in Ramba?s West Jambi Block

Singapore-listed firm Ramba Energy Limited announced Thursday has secured an investment of up to US$8.1 million for the company?s West Jambi Block, the third block in the company?s portfolio to receive positive news in recent months.

The investment comes from Perth-based private, resource focused venture capital group, Verona Capital Pty Ltd (?Verona?). The funds will be used to expedite the commencement and completion of a 3-year work program at the West Jambi Block in Sumatra,Indonesia, a major hydrocarbon producing region in close proximity to Singapore.

In the term-sheet signed by the Group?s wholly-owned subsidiary, Ramba Energy West Jambi Limited (?REWJ?), with Verona, the Group will receive US$4.239 million in the first year of the work program, followed by US$2.511 million in the second year, and the remaining balance in the third year at the option of Verona to continue further work programs on the West Jambi Block.

Scheduled to be conducted over a 3-year period, the work program has a total budget of US$19.2 million and comprises G&G studies, 2D and 3D seismic, and the drilling of two exploration wells, all of which REWJ will commit to deliver under the terms of the proposed West Jambi KSO (?Kerjasama Operasi? or Operation Cooperation Agreement) with Pertamina, which will be signed by the parties soon. The Company was successful in its bid for the West Jambi KSO in October 2010.

Daniel Jol, Commercial Director of Ramba Energy, said, ?Verona has a solid track record of investing in resource projects, specifically in oil and gas exploration, in South-east Asia, Australia and North America. We are pleased to see Verona?s investment in Ramba Energy as we increase operations in Indonesia. More importantly, we are confident that our continued exploration work will create additional value for our shareholders.?

Verona said, ?Ramba Energy is a fast-growing company that is well-positioned in Indonesia to attract quality resource project opportunities. We are excited to support Ramba and look forward to developing a long-lasting relationship for future project investment with them in Indonesia.?

According to the term sheet, a definitive agreement shall be executed by both parties within 30 days, subject to the completion of satisfactory due diligence by Verona and the execution of the West Jambi KSO. Under the proposed West Jambi KSO, REWJ will hold 100% working interest in the West Jambi KSO. (romel)