Ramba Energy

Ramba Energy: PT Sugih Energy has withdrawn its 51% partial offer for Ramba at $0.65/share due to its inability to obtain confirmation of financial resources which the group sought externally from its controlling shareholder, Edward Seky Soeryadjaya. Separately, Ramba issued an independent evaluation report by Australia-based RISC Operations, on the technical and commercial potential of its Western Indonesia asset portfolio, which comprises Lemang, Jatirarangon and West Jambi Blocks. The Lemang Block- which the group recently shifted from exploration to preparations for commencement of commercial production, projected production of 11,000 barrels of oil per day (bopd) and 26 million standard cubic ft of natural gas per day (mmscfd) for a low-case scenario (90% certainty), up to a high-case scenario (10% certainty) of 57,000 bopd and 101 mmscfd. Projected total gross capex for the low-case scenario was evaluated at US$45m and $263m for the high-case scenario, with annual operating expenditure of US$10-20m. Ramba expects to produce its first oil and gas from Lemang Block in 2H15 with high-case peak production estimates. Meanwhile, the Jatirarangon and West Jambi Blocks indicated an aggregate un-risked and risked gross prospective potential combined resources of ~441m barrels of oil equivalent (mmboe) and 86.2 mmboe respectively. Ramba trades at 3.2x P/B based on the current price of $0.545, compared to peers Loyz Energy at 1.7x, KrisEnergy at 1.3x, Interra Resources at 1.7x, and Rex International at 2.9x.