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Brightoil eyes further Bohai Bay and Pearl River acreage

04th November 2014

Brightoil Petroleum is planning to submit a formal bid to acquire all the issued shares of Newfield Global, which holds a 12 per cent interest in Bohai Bay Block 05/36 and a 49 per cent interest in Pearl River Block 16/05

Brightoil eyes further Bohai Bay and Pearl River acreage
Brightoil would fund the project with a combination of its internal resources, allotment of new shares as well as external borrowing

“The group will boost its oil and gas reserves and production if we win the bid and the proposed acquisition materialises,” said Dr. SIT Kwong Lam, chairman of Brightoil Petroleum.

“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."

Brightoil already owns a 29 per cent 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, Brightoil would fund the project with a combination of its internal resources, allotment of new shares as well as external borrowing.

“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, an authorised independent valuer based in the US, showed a substantial increase of 28.5 per cent 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 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 Lam.

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