Ramba Energy to farm out Lemang PSC in IndonesiaRamba Energy has announced the farm out of their Leman PSC in Indonesia to an undisclosed partner. The farm im partner will pay up to US$ 128 millons for a 25% interest in the license, for an impplied value of more than US$ 500 millons on a 100% basis. I understand that the block has no discoveries, other than the one that potentially extends into our own acreage, and that we are about to drill soon.
Very interesting news, that provides a good indication of the potential value of an eventual discovery.
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Ramba Energy to farm out Lemang PSC in Indonesia
07 Sep 2015
Ramba Energy has announced that on 6 September 2015 the Company entered into a memorandum of understanding ('MoU') with a strategic investor to farm-out a 25% working interest in the
Lemang production sharing contract (the 'Lemang PSC') from the Company’s 80.4%-owned Indonesian subsidiary, PT Hexindo Gemilang Jaya. Due to confidentiality obligations imposed by the Farm-In Partner pursuant to the MoU, the Company will make a separate announcement to disclose the identity of the Farm-In Partner upon execution of the Definitive Agreements.
The Company and Farm-in Partner have entered into the MoU with the objective to sign the Definitive Agreements on or before 25 September 2015. The Proposed Transaction is subject to confirmatory due diligence to be undertaken by the Farm-In Partner. From the date of the MoU until the date of the Definitive Agreements, the Parties will finalise the terms of the farm-out and other agreements which will document the terms of the Proposed Transaction, the amendments to the joint operating agreement and other enabling documentation such as the secondment agreement.
Under the terms of the MoU, the aggregate consideration for the Proposed Transaction is up to US$128,250,000, consisting of an upfront cash payment of approx. US$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 Company will make such further announcements to inform shareholders of any updates or developments.