Ramba Energy Limited announced on 12 June 2018 that the company-owned subsidiary PT Hexindo Gemilang Jayaâs farm-out deal in Lemang PSC to Mandala Energy, has received approval from SKK Migas on 5 June 2018. With the closing of the deal, Mandala has 50% operating interest, while Hexindo and Eastwin Global hold 16% and 34% participating interest respectively.  Mandala also holds an option to acquire an additional 6% interest from Hexindo. The option can be exercised by Mandala within 30 days from completion of the farm-out deal.  The block produced approximately 1,000 bo/d in February 2018.    On 18 September 2017, Hexindo came into agreement to farm-out 15% of its participating interest in the PSC to Mandala Lemang Singapore Pte. Ltd. In the farm-out deal, Hexindo also offered an option to acquire additional 6% of its participating interest to Mandala. Mandala had the right to acquire the additional 6% within the offer period, beginning on the completion date of the farm-out agreement or one business day after 1 January 2018, and ending on 31 March 2018. On 14 March 2018, Mandala Energy and Hexindo Gemilang agreed to extend the option period until 30 days after completion of the farm-out.  In case of Mandala exercising the option, its interest would further increase to 56% and Hexindo would retain 10%.    The decision for the farm-out was made to maintain the companyâs cash flow despite the current oil and gas economic situation.     On 24 May 2017, Ramba Energy announced the transfer of operatorship for the block from its subsidiary Hexindo to Mandala. Transfer of the operatorship was approved by SKK Migas on 17 May 2017.     The block started producing oil in November 2016, from the Akatara field. As of late February 2017, production was reported to be reaching 300 bo/d, plus around 2 MMcf/d of flared gas. It is targeted to increase production rate to 1,500 bo/d for the year.    Background Information    First oil production from the Akatara field in the Lemang PSC was achieved on 16 November 2016. The milestone was reached following to the issuance of the necessary forestry lease permit by Indonesian Ministry of Forestry and Environment.    Initial production is expected to reach 500 bo/d from the Akatara 2 well. The operator plans to increase output with additional production from other existing wells and from new development wells to be drilled from 2017 onwards.    The development plan for the block includes the recompletion of exploration wells Selong 1, Akatara 1 and Akatara 2, followed by eight new development wells and two step-out wells. Production was initially achieved through temporary facilities (Early Production Facilities). In this early stage, oil is transported by truck to the Tempino field and from there is pipelined to the Plaju refinery. In a later phase, the operator plans to install permanent facilities, possibly with a higher production capacity. A new pipeline is also planned to be built, in order to connect the block directly with the Plaju refinery.    The block is expected to produce up to 4,000 bo/d during the early production phase. Commercial gas production is expected to commence at a later stage. According to local media, quoting the operator in late February 2017, the block could potentially produce approximately 10,000 bo/d by 2022 if further development activities are conducted.
Ramba Energy Limited announced on 12 June 2018 that the company-owned subsidiary PT Hexindo Gemilang Jayaâs farm-out deal in Lemang PSC to Mandala Energy, has received approval from SKK Migas on 5 June 2018. 