Ramba Energy Limited (Ramba) says that Mandala Energy Limited (Mandala) will farm in to a 35 percent participating interest in the Lemang Production Sharing Contract (Lemang or Lemang PSC) from Ramba’s subsidiary PT Hexindo Gemilang Jaya (Hexindo), subject to the approval of the Government of Indonesia.

Mandala will invest up to $179.6 million in Hexindo. This consists of: an upfront cash payment of $26.25 million sliding-scale future contingent payments based on certification of oil and gas reserves partial carry for Ramba’s share of 3 exploration wells; and a cash payment upon declaration of the first new exploration discovery Under another concurrent agreement, Hexindo shall acquire 15 percent of Lemang PSC from Eastwin (which currently owns 49 percent participating interest in Lemang PSC) such that the net effect of these transactions would result in Mandala, Hexindo and Eastwin holding 35 percent, 31 percent and 34 percent participating interest respectively in Lemang PSC.

Tags: Ramba Energy Limited