Reach Energy to acquire 60% interest in Palaeontol for $154.9m

Malaysia-based Reach Energy has signed an agreement to acquire a 60% equity interest in Palaeontol COOP’s wholly owned subsidiary Palaeontol in a transaction valued at $154.9m.

Palaeontol COOP is an indirect wholly owned subsidiary of MIE Holdings (MIEH).

Investment holding company Palaeontol completely owns Emir-Oil which holds the entire working interest in the 850.3km² onshore contracted area in Mangistau Oblast in the southwestern region of the Republic of Kazakhstan.

The area includes four oil and gas producing fields with a total contract area of 45.5km² pursuant to four sub-soil use agreements that were signed between the Ministry of Energy of Kazakhstan (MOE) and Emir-Oil for hydrocarbons production, separately.

According to Reach Energy, the remaining 804.8km² area was signed between MOE and Emir-Oil for the continued exploration, development and production of hydrocarbons.

Reach Energy managing director Shahul Hamid Bin Mohd Ismail said: "The producing fields and exploration area (collectively known as Emir-Oil Fields) provide a unique opportunity for Reach Energy for investing and operating a balanced portfolio of O&G fields covering the wider spectrum of upstream O&G 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."

Once the acquisition concludes, Reach Energy will have majority ownership and control in Emir-Oil. The remaining 40% equity interest in Palaeontol will continue to be held by Palaeontol COOP.

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Image: The onshore contracted area in the Mangistau Oblast includes four oil and gas producing fields. Photo: courtesy of Victor Habbick / FreeDigitalPhotos.net.