GSS investing US$5m in Ramba project

Singapore

GSS ENERGY is investing US$5 million in Ramba Energy to participate in the latter's exploration programme at the West Jambi block in Sumatra, Indonesia - where two onshore wells are expected to be drilled from the second half of this year.

This marks an expansion of GSS's existing operations in Central & East Java into Sumatra, which will enhance the group's overall growth potential, said GSS in an announcement.

This also represents the third major investment that Ramba has secured in less than a month. Ramba said the group has raised some S$30 million in total funds, having completed a private share placement to Indonesian tycoon Tahir of the Mayapada Group, and another placement to Hong Kong tycoon Albert Yeung of Emperor Group and Indonesian businessman Harry Wangidjaja.

The West Jambi block is found to have about 426 million barrels of un-risked gross prospective potential oil equivalent (mmboe) and risked gross prospective oil potential of 83 mmboe, according to a review by international petroleum consultancy company RISC Operations.

Said GSS Energy CEO Sydney Yeung: "The West Jambi agreement with Ramba represents a great addition to our portfolio for our shareholders to benefit from Indonesia's exciting oil and gas sector.

"As the largest economy in South-east Asia, Indonesia's continued growth is dependent on access to energy, specifically oil and gas. GSS Energy is committed to strategically investing in the near-production or producing oil and gas sector across the country."

Added Ramba Energy CEO David Aditya Soeryadjaya: "I believe that this investment is a result of the recent improvements in the oil and gas industry, as evident in the Brent rallying to nearly US$70 per barrel, a high point for 2015. This improving sentiment definitely benefits exploration and production (E&P) companies such as Ramba."

Shares of GSS Energy fell 3.7 per cent to close at S$0.26, while those of Ramba Energy fell 2.2 per cent to close at S$0.435S on Tuesday.