Hong Kong, Mar 20, 2009 - (ACN Newswire) - New Times Group Holdings Limited (New Times Group or Company, stock code HK:0166) today approved the resolution regarding the framework agreement to acquire 60% beneficial interest in the exploration and potential exploitation concession of petroleum and natural gas entries located in the north of Argentina at the Special General Meeting.
The approved transaction from New Times Group shareholders let the Company to acquire two oilfields in Argentina for the consideration of the amount for HK$2.1 billion. The acquisition of 60% beneficial interest in Tartagal Concession and Morillo Concession is enabling the Group to focus its business in natural resources exploitation.
The Tartagal Concession and Morillo Concession cover a total area of approximately 7,063 and 3,534 square kilometers respectively and are situated in the province of Salta in northern Argentina, bordering with Paraguay in the west and Bolivia in the north. The two concessions have the right of the exploration permits and potential exploitation permits for oil and developments of hydrocarbons.
According to a Technical Report generated by a firm of independent valuer, the estimated unrisked gross (100%) prospective resources of approximately 144.5 million barrels of oil and 2,342,209 million of cubic feet of gas.
Executive director of the Company, Mr. Cheng Kam Chiu said, There is further opportunity to extract various other by-products as international commodities, the consumption of petroleum and natural gas has been a global trend hence, prices for petroleum and its related products have been rising over years. In view of the continued economic growth and accelerated industrialization and urbanization in certain parts of the world as well as the development of the global economy, petroleum and other natural resources will have its sustained demand. We believe our income base will be expanded after the acquisition.
Mr. Cheng added, The exploration work had been carried out since 1980 and 23 wells had been drilled in the zone of Tartagal block. For some reasons the exploration work had been suspended, and now New Times Group restores and restructures these wells and turn to producing oil. Two out of three restructured wells were succeeded in finding out oil during the due diligence last year which further strengthen our confident in this acquisition.
About New Times Group Company Limited
New Times Group acquired a BVI company through entering into a conditional Framework Agreement in October 2007, The Framework Agreement was a joint venture of Maxipetrol and JHP International Petroleum Engineering Ltd, which operate two petroleum and natural gas entries in Argentina. The Company proposed to acquire at the consideration of HK$2.1 billion, which was according to the valuation report drafted and issued from an independent valuer, the entries in the amount of approximately HK$ 11.7 billion. After the acquisition, the business of the Company will be focused on exploration and exploitation of the reservation of crude oil and natural gas in the beginning. The explored crude oil will be sold to local market in Argentina, the Company believe this acquisition will widen the income source of the Company.
Source: New Times Group Company Limited
Contact:
Copyright 2009 ACN Newswire. All rights reserved. www.acnnewswire.com
The approved transaction from New Times Group shareholders let the Company to acquire two oilfields in Argentina for the consideration of the amount for HK$2.1 billion. The acquisition of 60% beneficial interest in Tartagal Concession and Morillo Concession is enabling the Group to focus its business in natural resources exploitation.
The Tartagal Concession and Morillo Concession cover a total area of approximately 7,063 and 3,534 square kilometers respectively and are situated in the province of Salta in northern Argentina, bordering with Paraguay in the west and Bolivia in the north. The two concessions have the right of the exploration permits and potential exploitation permits for oil and developments of hydrocarbons.
According to a Technical Report generated by a firm of independent valuer, the estimated unrisked gross (100%) prospective resources of approximately 144.5 million barrels of oil and 2,342,209 million of cubic feet of gas.
Executive director of the Company, Mr. Cheng Kam Chiu said, There is further opportunity to extract various other by-products as international commodities, the consumption of petroleum and natural gas has been a global trend hence, prices for petroleum and its related products have been rising over years. In view of the continued economic growth and accelerated industrialization and urbanization in certain parts of the world as well as the development of the global economy, petroleum and other natural resources will have its sustained demand. We believe our income base will be expanded after the acquisition.
Mr. Cheng added, The exploration work had been carried out since 1980 and 23 wells had been drilled in the zone of Tartagal block. For some reasons the exploration work had been suspended, and now New Times Group restores and restructures these wells and turn to producing oil. Two out of three restructured wells were succeeded in finding out oil during the due diligence last year which further strengthen our confident in this acquisition.
About New Times Group Company Limited
New Times Group acquired a BVI company through entering into a conditional Framework Agreement in October 2007, The Framework Agreement was a joint venture of Maxipetrol and JHP International Petroleum Engineering Ltd, which operate two petroleum and natural gas entries in Argentina. The Company proposed to acquire at the consideration of HK$2.1 billion, which was according to the valuation report drafted and issued from an independent valuer, the entries in the amount of approximately HK$ 11.7 billion. After the acquisition, the business of the Company will be focused on exploration and exploitation of the reservation of crude oil and natural gas in the beginning. The explored crude oil will be sold to local market in Argentina, the Company believe this acquisition will widen the income source of the Company.
Source: New Times Group Company Limited
Contact:
Porda International (Finance) PR Company Limited Harriet Lau harriet.lau@pordafinance.com.hk Tel: (852) 3150 6761/ (852) 9199 2965 Keely Chan keely.chan@pordafinance.com.hk Tel: (852) 3150 6760 / (852) 9770 2950 Alman Loong alman.loong@pordafinance.com.hk Tel: (852) 3150 6731 / (852) 9107 8225 Kate Lam kate.lam@pordafinance.com.hk Tel: (852) 3150 6738 / (852) 9122 7942 Fax: (852) 3150 6728
Copyright 2009 ACN Newswire. All rights reserved. www.acnnewswire.com