Singapore's Ramba Energy to Farm Out 25% Stake in Indonesian PSC

Singapore based Ramba Energy has signed a MoU to farm out 25 percent stake in Lemang PSC from its 80.4 percent-owned Indonesian subsidiary, PT Hexindo Gemilang Jaya.

Ramba did not disclose the identity of farm-in partner.

The two entities have entered into the MoU with the objective to sign the definitive agreements on or before 25 September 2015, Ramba announced Monday.

Under the terms of the MoU, the aggregate consideration for the proposed transaction is up to $128,250,000, consisting of an upfront cash payment of approximately $18,750,000, payable on completion of the proposed transaction following satisfaction of certain regulatory and other conditions, with the remaining cash payments payable upon achieving certain agreed milestones. 

The Lemang block is located in the northern most part of the hydrocarbon-rich South Sumatra basin, a proven region for oil and gas production with transportation infrastructure already in proximity. Located approximately 300 kilometres from Singapore, the Lemang block is ideally situated for oil and gas distribution to regional markets.