HONG KONG, Nov. 4, 2014 /PRNewswire/ -- Brightoil Petroleum (Holdings) Limited ("Brightoil Petroleum" or the "Group"; stock code: 933.HK) is pleased to announce that it is planning to submit a formal bid to acquire all the issued shares of Newfield Global Inc. ("Newfield"), which holds a 12% interest in Bohai Bay Block 05/36 ("Bohai Bay Block") and a 49% interest in Pearl River Block 16/05 ("Pearl River Block"). The Group already owns a 29% interest of the oil-producing Bohai Bay Block. According to Newfield, the Pearl River Block is under development. It is expected to commence production by the end of November 2014, and it will be operated by a subsidiary of Newfield.
A bid evaluation process is expected to commence 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 Group would fund the project with a combination of its internal resources, allotment of new shares as well as external borrowing.
Dr. SIT Kwong Lam, Chairman of Brightoil Petroleum, said, "The Group 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. In particular, the recent downward trend of global oil price offers us valuable acquisition opportunities. 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."
"Since the beginning of this year, there have been a number of breakthroughs in our upstream expansion. We completed the acquisitions of two premier offshore oil-producing blocks in Bohai Bay in August. In addition, the evaluation done by DeGolyer and MacNaughton ("D&M"), an authorized independent, professional valuer based in the US, showed a substantial increase of 28.5% in the Proved plus Probable ("2P") gas reserve in Dina 1 and Tuzi gas fields. Together with our 2P reserves of approximately 42 million barrels of oil equivalent ("boe") at the Caofeidian Project in Bohai Bay, the Group's aggregate 2P reserves reach approximately 93.9 million boe, laying a solid foundation for our sustainable development," added Dr. SIT Kwong Lam.
| About Brightoil Petroleum
Brightoil Petroleum (Holdings) Limited is a resource-based energy enterprise focusing on upstream oil and gas resources exploration, along with further developments midstream and downstream. The Group is principally engaged in the exploration, development and production of Upstream Oil and Gas Fields, Marine Transportation, Oil Storage and Terminal Facilities and International Trading and Bunkering Business.
The Group has three oil and gas field projects in its portfolio, including Dina 1 Gas Field, Tuzi Gas Field and Caofeidian oil Field in Bohai Bay. According to the report issued by DeGolyer and MacNaughton ("D&M"), as at 31 August 2014 the Group's aggregate 2P reserves have reached 93.9 million barrels of oil equivalent. When all these three blocks are in operation, Dina 1, Tuzi and Bohai will reach a daily net production of approximately 25,000 barrels of oil equivalent, and an annual net production of approximately 9 million barrels of oil equivalent.
The Group currently operates four Aframax Oil Tankers and five VLCCs, and has a total capacity exceeding 2 million tonnes.
The Group's oil storage facility on Waidiao Island in Zhoushan, with a total capacity of 3.16 million cubic meters, is under construction. The facility will be equipped with 13 berths which can accommodate vessels from 1,000 to 300,000 deadweight tonnage. Meanwhile, the Group's oil storage facility on Changxing Island in Dalian, with a total capacity of 7.19 million cubic meters, is also under construction. The facility will be equipped with 13 berths to accommodate vessels from 1,000 to 300,000 deadweight tonnage.
The Group is one of the largest marine bunkering service providers in China with services expanded to global ports. The Group's tradable range of products is diversified into fuel oil, crude oil, gas oil, as well as petrochemical and the related petroleum products.
The Group will continue to develop its upstream business by stretching its tentacles into the exploration, development and production of oil fields with a view to becoming one of the leading resources-based energy conglomerates in the world. |
For additional information about Brightoil, please visit the Company's website at www.brightoil.com.hk
Press Release distributed by: Brightoil Petroleum (Holdings) Limited
