Loyz Energy Ltd., a Singapore-based upstream energy group, is set to buy into its first oil-producing concessions, which are expected to be immediately cashflow-positive, for $65 million.
Under the sale-and-purchase agreement signed with Carnavon Thailand Ltd., a subsidiary of an ASX-listed exploration and production company, Carnavon Petroleum Ltd., Loyz will acquire a 20% stake in three onshore concessions (SW1, L44/43 and L33/43), located in Thailand’s Phetchabun Basin about 186 miles (300 kilometers) north of Bangkok.
On completion, Loyz will make a payment of $33 million, and the remaining consideration of $32 million will be funded through revenue generated by producing wells at the concessions.
Currently, the three concessions are producing at a rate of around 1,200-1,400 barrels of oil per day (bopd) in total. Based on the field development plans in place by the operator, ECO Orient Energy (Thailand) Ltd. and ECO Orient Resources (Thailand) Ltd., Loyz expects the production rate to rise to 3,000 bopd by June and 5,000 bopd by December.