Malaysian Digest - Reach Energy To Acquire 60 Per Cent Interest In Palaeontol BV For US$154.9 Million

Reach Energy Bhd will acquire a 60 per cent equity interest in Palaeontol BV for US$154.9 million through a tripartite conditional sale agreement with Palaeontol Cooperatief UA and MIE Holdings Corp.

In a statement Monday, Reach Energy said Palaeontol BV is an investment holding company and is the sole interest holder of Emir-Oil LLP, which owns the entire working interest of 850.3 square kilometres in an onshore contracted area in Kazakhstan.

The area includes four oil and gas producing fields with a total contract area of 45.5 square kilometres pursuant to four sub-soil use agreements signed separately between the Kazakhstan Energy Ministry (MOE) and Emir-Oil for hydrocarbons production.

Reach Energy said the remaining contracted area of 804.8 square kilometres was signed between the parties for the continued exploration, development and production of hydrocarbons.

Chief Executive Officer Shahul Hamid Mohd Ismail said Emir-Oil's producing fields and exploration area provide an unique opportunity for Reach Energy to invest and operate a balanced oil and gas portfolio covering upstream production, development and further exploration activities.

"The producing fields are in their early and prime stage of production and the development fields are currently under pilot production.

"We believe that there is significant upside potential through further planned efforts, techniques and schemes," he added.

Upon completion of the proposed acquisition, Reach Energy via its 60 per cent equity interest in Palaeontol BV, will have majority ownership and effective control of Emir-Oil.

- Bernama

http://www.malaysiandigest.com/business/598841-reach-energy-to-acquire-60-per-cent-interest-in-palaeontol-bv-for-us-154-9-million.html