KUALA LUMPUR: Reach Energy Bhd
will acquire a 60% interest in Palaeontol BV for US$154.9 million (RM633 million) through a tripartite conditional agreement with Palaeontol Cooperatief UA and MIE Holdings Corp.
In a statement on Monday, Reach Energy said Palaeontol BV is an investment holding company and is the sole interest holder in Emir-Oil LLP, which owns the entire working interest over 850.3 sq km in an onshore contracted area in Kazakhstan.
The area includes four oil and gas producing fields with a total contract area of 45.5 sq km following four sub-soil use agreements signed separately between Kazakhstan's Energy Ministry and Emir-Oil for hydrocarbon production.
Reach Energy said the remaining contracted area of 804.8 sq km was signed between the parties for the continued exploration, development and production of hydrocarbons.
Reach Energy 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.
On completion of the proposed acquisition, Reach Energy via its 60% equity interest in Palaeontol BV, will have majority ownership and effective control of Emir-Oil. - Bernama