Astute deal gives key project a path to production
Ramba Energy Ltd (SI:RAMB) has had considerable success since we initiated coverage in September 2014. After executing two successful share placings amidst a difficult equity market for oil and gas in May 2015, the group received development approval for its key asset; Akatara, in the Lemang block. Consequently, Ramba was able to farm out a 20% working interest in the Lemang block to well-funded Mandala Energy, subject to completion and approval, securing the cash required to fund its part in the development. In addition, the Mandala deal secures financial leverage for Ramba to any reserves growth at Akatara and gives it a financial carry of up to $1.6m per well in up to three exploration wells in the block.
All systems go for core asset, Akatara
Since approval of the fast-track development of the group’s core oil, gas and condensate discovery, Akatara, the field has become a priority for attention. Ramba announced government approval for the development plan at Akatara on 10 August 2015 and subsequently farmed out (subject to approval and completion) a 20% working interest in the Lemang block to fund its share of the project. Although Phase 1 development involves further drilling, the installation of an early production facility has enabled the group to target first production and cash flow by mid-2016, transforming the group’s finances.
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