SINGAPORE - Catalist-listed GSS Energy said on Tuesday that it has entered into an investment agreement with mainboard-listed Ramba Energy to place a US$5 million investment to participate in Ramba's exploration programme at the West Jambi block in Sumatra, Indonesia.
Two onshore wells in this block are expected to be drilled commencing in the second half of this year.
RISC Operations Pty Ltd, an international petroleum consultancy company has reviewed 9 prospects and 8 lead wells at the West Jambi block and has identified approximately 426 million barrels of un-risked gross prospective potential oil equivalent and risked gross prospective oil potential of 83 million barrels.
GSS Energy said its investment and its participation in Ramba's exploration programme represents a strategic geographic expansion from its Central and East Java operations into Sumatra through the West Jambi block, which will enhance its overall growth potential.
Commenting on the agreement, CEO of GSS Energy, Mr. Sydney Yeung, said, "This block has great production potential and we expect our investment to yield good economic returns after the successful drilling of the two wells commencing in the second half of this year."
Mr. David Aditya Soeryadjaya, CEO of Ramba, said, "I believe that this investment is also a result of the recent improvement in the oil and gas industry, where recently Brent rallied to almost US$70/barrel, which is a 2015 high. This improving sentiment definitely benefits E&P companies such as Ramba.
"Additionally, as this is the third investment that the Group has received in the past month, it further demonstrates that regional investors are viewing our strategy and oil and gas portfolio favourably. Having raised around $30 million in total funds, Ramba is well capitalised to continue in its oil and gas work programme in Indonesia.
"Finally, I would also like to highlight that I am glad that we can do this exploration collaboration with a fellow SGX listed company."