Loyz Energy Enters into MOU with Hong Kong-based Enso Oil & Gas

Singapore's Loyz Energy Limited announced Monday that the firm has entered into a binding memorandum of understanding (MOU) with Enso Oil & Gas Limited for the latter to acquire a stake in Loyz's 51.78 percent owned subsidiary Interlink Petroleum Limited and to recommend suitable exploration and production assets in Russia's Irkutsk region for Internlink's acquisition.

Enso, a Hong Kong-based oil and gas company, has a 51.0 percent shareholding interest in a Russian company which holds a license for gas exploration and production in Russia, Loyz said in an announcement on the Singapore Exchange.

Under the MOU, Enso shall:

• propose certain exploration and production assets in Irkutsk to be acquired by Interlink
• subscribe for securities in Interlink; and
• pay in full Interlink’s loan of $0.5 million from a financial institution which is repayable from December 2014

The MOU, which is valid for 60 days unless extended by mutual consent of all parties, is conditional upon the completion of necessary due diligence by Enso and compliance and receipt of necessary governmental consents and approvals.