Ramba revealed Monday that its 80.4%-owned Indonesian subsidiary PT Hexindo Gemilang Jaya had signed a deal to farm out a 35% interest in the PSC to a subsidiary of Mandala Energy – Mandala Lemang Singapore.
Mandala will make an initial cash payment of $15 million, with additional payments to be made in respect of costs incurred by Hexindo between the date of the agreement and the completion of the deal.
The deal also includes oil reserve bonuses of up to $68 million and gas reserve bonuses of up to $10 million based on the estimated proved and probable ultimate recoverable volumes.
The reserve bonuses will be payable by Mandala following each issuance of a reserve certificate by an independent petroleum engineer.
Mandala has also...
