Ramba sells Lemang PSC stake to Mandala for up to $179.6M

Mandala Energy Ltd. will farm in to a 35% participating interest in the Lemang production sharing contract (PSC) from Ramba Energy Ltd.’s subsidiary PT Hexindo Gemilang Jaya, subject to the approval of the Indonesian government.

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 three exploration wells; and a cash payment upon declaration of the first new exploration discovery.

Under another concurrent agreement, Hexindo shall acquire 15% of the Lemang PSC from Eastwin (which currently owns a 49% participating interest in the Lemang PSC) such that the net effect of these transactions would result in Mandala, Hexindo, and Eastwin holding 35%, 31%, and 34% participating interest, respectively, in the Lemang PSC.

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