Zhaikmunai to Take Three Kazakh Fields for $16 Million
Independent explorer and producer Zhaikmunai is set to quadruple its gas and oil field assets following the acquisition of three fields in Kazakshtan for $16 million.
The company, which currently has a stake in just one field, the oil- and gas condensate-rich Chinarevskoye field in Kazakhstan, will acquire three more fields in Kazakhstan at a cost of $16 million. The sale, which is made with an unnamed seller, will give Zhaikmunai access to the Rostoshinskoye, Darjinskoye and Yujno-Gremyachenskoe fields. The three fields are located on the same basin as the Chinarevskoye field, the Pre-Caspian basin.
In a statement released on Sunday evening, Zhaikmunai said that it was very pleased with the acquisitions and said that the deal would have a great effect on the company's performance in the future.
"This is a great moment for Zhaikmunai as we move from a single field asset to a multi-field oil & gas company," CEO Kai-Uwe Kessel said. "Whilst Chinarovskoye remains very much our core focus I am pleased that we have been able to acquire these complementary assets and maintain our prudent approach to cash flow management and a robust capital structure...
"Its proximity is likely to result in similar geology to our existing field, which we have enjoyed great success in developing. I am confident that we have found a number of exciting fields to develop over the coming years
Through the deal, an Asset Purchase Agreement signed on the 17th of August this year, Zhaikmunai will take a 100 per cent stake in all three fields. The acquisition is contingent on approval from the relevant Kazakh authorities as well as the Kazakh Ministry of Oil and Gas and the Kazakh Anti-Monopoly Agency.