JAKARTA (rambuenergy.com) – Singapore-based oil and gas company Ramba Energy Limited announces that it has on Sept. 6, 2015 entered into a memorandum of understanding (MoU) with a strategic investor to farm-out a 25 percent working interest in the Lemang production sharing contract (Lemang PSC) from the company’s 80.4 percent-owned Indonesian subsidiary, PT Hexindo Gemilang Jaya.
The company is yet to disclose the farm-out partner due to confidentiality obligations imposed by the Farm-In Partner pursuant to the MoU.
The Company and Farm-in Partner have entered into the MoU with the objective to sign the Definitive Agreements on or before Sept. 25, 2015. The Proposed Transaction is subject to confirmatory due diligence to be undertaken by the Farm-In Partner, Tan Chong Huat, Ramba Energy’s non-executive chairman said.
From the date of the MoU until the date of the Definitive Agreements, the Parties will finalize 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$128.25 million, consisting of an upfront cash payment of approximately US$18.75 million, 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.