Pacific Energy to acquire stake in Aral Petroleum’s Kazakhstan assets

Pacific Energy Development will acquire a 34% indirect interest in Aral Petroleum Capital’s Aktobe Oblast oil and gas assets in western Kazakhstan.

The contract area covers the producing and developing areas of the East Zhagabulak field and exploration areas of the Baktygaryn, Itassai, Kodzhasy and West Kodzhasy fields.

Aral produced around 11,385 tons of oil equivalent from five wells in 2012, while it is currently producing around 383 barrels of oil equivalent a day from three wells in the area.

The company also plans to conduct 2D and 3D geographical operations and engineering designs in around 123,553 acres in the area, while it has spent approximately $134m on exploration and development.

Aral Petroleum Capital currently holds a 100% stake in the assets, which span 380,000 acres in the North Block, located in the pre-Caspian Basin.

The production license for the assets will expire in 2035. It was issued to Asia Sixth Energy Resources, which currently has 60% controlling interest in Aral. As part of the deal, Pacific Energy plans to acquire a 51% stake in Asia Sixth Energy Resources.

Pacific Energy Development CEO and president Frank Ingriselli said that the latest deal allows the company to participate in a long standing global oil play.

"Not only is the large contract area of 380,000 acres within the largest producing basin in Kazakhstan, it is also in close proximity to some of the most prolific oil producing properties in the Republic of Kazakhstan, including the two largest oilfields owned by Chevron Corporation," Ingriselli added.