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Our Assets

Lemang PSC, Sumatra, Indonesia

On 5th October 2015 it was announced that Mandala Energy Limited (“Mandala”) would farm in to a 35% participating interest in the Lemang Production Sharing Contract (Lemang PSC) from Ramba Energy (“Ramba”) subsidiary PT Hexindo Gemilang Jaya (“Hexindo”), subject to the approval of the Government of Indonesia.

Mandala will invest up to US$179.6 million in Hexindo. This consists of:

  • an upfront cash payment of US$26.25 million;
  • sliding-scale future contingent payments based on certification of oil and gas reserves;
  • partial carry for Ramba’s share of 3 exploration wells; and
  • a cash payment upon declaration of the first new exploration discovery.

With simultaneous additional reconfiguration of interests between Hexindo and Eastwin, the transaction results in Mandala, Hexindo and Eastwin holding 35%, 31% and 34% participating interest respectively in the Lemang PSC.

Regulatory approvals were received and transaction completion was announced on 10th February 2016.

In Q3 of 2016, two pre-existing wells were recompleted and brought on stream. Since then, the emphasis has been on evaluating the reservoir and testing artificial lift options such that optimum solutions will be applied when new wells are brought on stream in Q2 2017. Drilling of the first batch of 5 new development wells commenced on 11th May 2017. Regulatory approval is being sought for drilling of a further five new development wells in 2018.

Please see location maps for the asset below:

 

Lemang PSC map location

 

Lemang-Akatara Location Map_1
Click map to Full size

 

 

Sumbagsel and Merangin III PSCS, Sumatra, Indonesia

On 10th February 2016, it was announced that Mandala Energy (“Mandala”) and Cooper Energy (“Cooper”) had entered into agreements for the sale of Cooper’s Indonesian exploration assets to Mandala for a consideration of US$8.25 million. 

Under the transaction, Mandala acquired 100% of the Sumbagsel and Merangin III PSCs located in the South Sumatra Basin and is now operator of both blocks.

The sale, which is effective from 1st January 2016, received Indonesian government approval in May 2016. 

The acquisition of these two large PSCs marked a very important strategic milestone for Mandala Energy. From a portfolio perspective, it significantly increased Mandala’s footprint in the prolific South Sumatra Basin and provided it with operatorship of two high quality exploration assets.

In Q2/Q3 2016, Mandala conducted surface geochemical surveys across both blocks, followed by AGG (Aero Gravimetric Gradiometer) surveys across both blocks in Q1 2017. These surveys in the Sumbagsel block steered the team’s focus to a highly prospective area in the Southeastern part of the block, adjacent to and on trend with a number of producing oil fields.

Please see location maps for the asset below:

 

Sumbagsel and Merangin III PSCs Sumatra

 

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