SINGAPORE (Yosefardi) – Ramba Energy Limited has on 21 September 2014 signed a binding Letter of Offer with Risco Energy Investments Holding Pte. Ltd. (REI) for REI to acquire a 25% direct working interest in the Lemang production sharing contract (Lemang PSC) from the Company’s Indonesian subsidiary, PT Hexindo Gemilang Jaya.
Lemang oil and gas block is located in the Riau and Jambi provinces of South Sumatra.
Under the terms of the Offer Letter, REI will pay a structured cash consideration of up to US$157.5 million for the direct purchase of a 25% direct working interest in the Lemang PSC on a cash-free, debt-free equivalent basis, based on an effective date of 1 January 2014.