Reach Energy shareholders okay Kazakh buy

Reach Energy Bhd., Kuala Lumpur, has received shareholder approval to buy a 60% interest in the owner of the productive Emir-Oil Concession Block in Kazakhstan for $154.9 million.

The company entered a conditional agreement last March to buy the interest in Palaeontol BV from Palaeontol Cooperatief UA (Palaeontol COOP) and MIEH Holdings Corp. of Hong Kong. Palaeontol COOP is a wholly owned subsidiary of MIEH.

Palaeontol BV is an investment holding company and the sole interest holder in the Emir-Oil concession.

The 850,300-sq-km contract area is in the Mangyshlak basin about 40 km northeast of Aktau.

Aksaz natural gas and condensate field and Dolinnoe, Emir, and Kariman oil fields are producing on the block at restricted rates. North Kariman and Yessen oil fields are on pilot production.

A gas pipeline, gas processing plant, oil-processing equipment, and oil storage and transport facilities are in place.

Reach Energy estimates gross proved reserves of the fields, including the pilots, at 24.6 million stock-tank bbl of oil and 17.7 bcf of natural gas.

At least 10 exploratory prospects have been identified, it said.

In a statement, MIEH said Reach Energy shareholder approval satisfied all conditions for the sale.

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