Brightoil Petroleum Ltd. is preparing to submit a formal bid to acquire all the issued shares of Newfield Global Inc., which holds 12% interest in Bohai Bay Block 05/36 and 49% interest in Pearl River Block 16/05, offshore China.
According to Newfield, the Pearl River Block is under development and is expected to begin production by the end of November 2014. It will be operated by a subsidiary of Newfield.
Brightoil says a bid evaluation process is expected to begin shortly after the bid, and the successful bidder will enter into a definitive share purchase agreement with the seller around December 2014. If the proposed acquisition is successful, the company would fund the project with a combination of its internal resources, allotment of new shares as well as external borrowing.
“The company will boost its oil and gas reserves and production if we win the bid and the proposed acquisition materializes. Brightoil is devoted to establishing itself as a resource-focused international oil and gas enterprise through organic growth and acquisitions of quality upstream assets,” says Dr. SIT Kwong Lam, Brightoil chairman. “Going forward, we will continue our upstream expansion strategy to enlarge our oil and gas assets so as to deliver greater returns to shareholders and investors."
According to Brightoil, the company completed the acquisitions of two premier offshore oil-producing blocks in Bohai Bay in August. In addition, the evaluation done by DeGolyer and MacNaughton showed a substantial increase of 28.5% in the proved plus probable (2P) gas reserve in Dina 1 and Tuzi gas fields.
Lam went on to say that together with Brightoil’s 2P reserves of approximately 42MMboe, the Caofeidian project in Bohai Bay, the company’s aggregate 2P reserves reach approximately 93.9MMboe, laying a solid foundation for the company’s sustainable development.
In August, Brightoil finalized its US$1.046 billion acquisition of two offshore oil-producing blocks from Anadarko China Holdings 2 Co. Ltd. The two blocks located in Bohai Bay include the CNOOC China Ltd.-operated 124sq km contract area 04/36 and the 88sq km unit area 05/36. In the contract, Brightoil acquired 40.09% interest in 04/36 with partners CNOOC (51%) and Singapore Petroleum (8%). In addition, the company acquired 29.18% interest in 05/36.
With Brightoil's 29.18% interest in 05/36, other partners include CNOOC as operator with (51%), Newfield Exploration (12%), and Singapore Petroleum (8%).
Image from Brightoil.
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