Malaysia's Reach Energy Buys into Kazakh Oil, Gas Field

Malaysia's Reach Energy, a Special Purpose Acquisition Company (SPAC), has signed a tri-partite agreement with Palaeontol Cooperatief UA and MIE Holdings Corp to purchase 60 percent stake in Palaeontol for $154.9 million.

Palaeontol is a wholly-owned subsidiary of Palaeontol Cooperatief UA which in turn is an indirect wholly-owned subsidiary of MIE Holdings.

Palaeontol is an investment holding company and is the sole interest holder of Emir- Oil which holds the entire working interest in an approx. 850.3 sq km onshore contracted area located in the Mangistau Oblast in the southwestern region of Kazakhstan, Reach Energy said in a statement Tuesday.

As at 1 January 2016, the indicative gross proved plus probable (2P) reserves of the producing fields and development fields estimated by RPS Energy Consultants, the independent technical and asset valuation expert appointed by Reach Energy, are 72.1 Million Stock Tank Barrels (MMstb) of oil and 102.4 Billion Standard Cubic Feet ('Bscf') of gas. The net 2P reserves attributable to Reach Energy post completion of the proposed acquisition are 43.3 MMstb of oil and 61.4 Bscf of gas, equivalent to total net 2P reserves attributable to Reach Energy of 53.5 million barrels of oil equivalent, the company said.

Upon completion of the acquisition, Reach Energy via its 60 percent equity interest in Palaeontol will have majority ownership and effective control in Emir-Oil which is the designated sole operator of Emir-Oil Fields. The remaining 40 percent equity interest in Palaeontol will continue to be held by Palaeontol COOP.