Ramba Energy announced Monday that it has entered into a memorandum of understanding with an investor to farm out a 25 percent working interest in the Lemang production sharing contract, from the company’s 80.4 percent owned subsidiary PT Hexindo Gemilang Jaya.
The proposed transaction is worth up to $128.25 million, according to Ramba Energy, and will include an upfront cash payment to Ramba of approximately $18.75 million. Due to confidentiality obligations imposed by the farm-in partner pursuant to the MoU, a separate announcement will be made in due course to disclose the identity of the investor.
Ramba and its farm-in partner aim to sign a definitive agreement on or before September 25, 2015. From the date of the MoU until the date of the definitive agreement, the parties will finalize the terms of the farm-out.
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