Malaysia's Reach Energy Moves Nearer to its First Upstream Asset Purchase
Malaysia's Reach Energy Berhad announced Tuesday that its wholly-owned subsidiary Reach Energy Ventures Sdn Bhd has received approval of the authorities in Kazakhstan for its acquisition of a 60 percent interest in Palaeontal B.V. -- a unit of MIE's subsidiary Palaeontol Cooperatif -- which holds a 100 percent working interest in an onshore block in Mangistau Oblast in southwest Kazakhstan through Emir-Oil LLP.
Reach Energy Ventures received July 18 the approval of the Committee on Regulation of Natural Monopolies and Protection of Competition of Kazakhstan's Ministry of National Economy for the acquisition of the equity stake.
"Such approval constitutes one of the conditions precedent to be fulfilled by the Company on or before the Longstop Date under the SPA (sale and purchase agreement), the firm said in a filing on local stock exchange Bursa Malaysia.
When completed, the deal will be Reach Energy's first qualifying acquisition of an upstream asset as a special purpose acquisition company on Bursa Malaysia. The onshore block in Kazakhstan, spread over 328.3 square miles, is located around 24.9 miles northeast of Aktau and comprised four existing oil and gas producing fields of Aksaz, Dolinnoe, Emir and Kariman.
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