31 December 2012 05:58 [Source: ICIS news]
SINGAPORE (ICIS)–Hong Kong-listed Pearl Oriental Oil announced over the weekend that it plans to acquire approximately 70.3% interests of Canada’s Petrox Resources for Canadian dollars (CAD) 7m ($7m).
A letter of intent was signed on 28 December in relation to the possible acquisition, Pearl Oriental Oil said in a statement.
Meanwhile, in the agreement, the Hong Kong company also acquired the right to buy 43.75m new shares of Petrox at CAD8.75m in the span of two years to expand its total stake in Petrox to 82.6%.
Petrox owns 100% working interest at the Halkirk/Battle (Viking oil field) and the Bashaw (Richfield oil field) area in Central Alberta, and the potential original oil in place in the fields is estimated at over 160m barrels, the statement said.
Crude productions at those fields are expected to start in the second half of 2013, it added.
Pearl Oriental Oil also expects a definitive agreement for the transaction to be signed in January 2013 and the deal to be completed by 15 March 2013.
The move will accelerate the development, operation and acquisition in Canadian oil fields, Pearl Oriental Oil said.
($ = CAD0.997)
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