Ramba Energy Limited (Ramba or the Group), an oil and gas exploration and production company with interests in Indonesia, disclosed Monday the results of an independent evaluation of the Group’s Indonesian oil and gas assets by RISC Operations Pty Ltd (RISC).
For the Lemang block, the RISC evaluation reviews the development concept for the block’s Selong and Akatara structures, the locations of the Group’s oil and gas discoveries. The evaluation projects peak production of 57,000 barrels of oil per day (bopd) and 101 million standard cubic feet of natural gas per day (MMscf/d) for the high-case scenario (P10), 25,000 bopd and 47 MMscf/d for the mid-case scenario (P50), and 11,000 bopd and 26 MMscf/d for the low-case scenario (P90).
The evaluation projects total gross capital expenditures of approximately $45 million for the low-case scenario (P90), $131 million for the mid-case scenario (P50), and $263 million for the high-case scenario (P10), with approximately $10-20 million in annual operating expenditures, which includes the rental of early production facilities.
SKK Migas, Indonesia's oil and gas regulator, has halted all exploration activity for the Lemang Block and instructed the Company to work on hydrocarbon production as soon as possible. Based on the current schedule, first hydrocarbon production is expected sometime in the second half of 2015 or early 2016.
Tan Chong Huat, Chairman of Ramba Energy, said, “This independent evaluation further upholds Ramba’s longstanding belief in the technical and commercial strength of our oil and gas team and assets. Lemang is our crown jewel and a top priority, so we will be aiming to start production ahead of schedule. These discoveries are only one of many prospects so we are confident there is more oil and gas within the Lemang block. In addition to this, we are exceptionally enthusiastic about our West Jambi prospects and look forward to proving up those leads and prospects later this year.”
The completion of the RISC evaluation comes following Ramba’s February 2014 announcement stating that the Government of Indonesia has mandated that the Group immediately transition its work program from exploration to the Plan of Development (POD) for the Lemang block for the commencement of commercial production (COCP).
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