Companies

Yantai Xinchao Industry to buy overseas shale oil assets

BEIJING
2015-12-17 11:06

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Yantai Xinchao Industry Co. Ltd (600777.SH) announced on late Wednesday that the company planned to spend 8.3 billion yuan acquiring Ningbo Dingliaohuitong Equity Investment Center Co. Ltd. Ningbo Dingliaohuitong's main assets include shale oil fields in Texas in the United States, which cover an area of over 77,000 acres.

Upon completion of the deal, Yantai Xinchao Industry will have over 200 million barrels of 1P reserves and over 500 million barrels of 2P reserves.

Yantai Xinchao Industry plans to issue 736 million shares at 11.28 yuan/share to the owners of Ningbo Dingliaohuitong and pay 1.1607 million yuan in cash.

In addition, the company plans to raise a maximum of 2 billion yuan via private placement at 14.6 yuan/share or higher. The funds will be used to develop shale oil fields and supplement the working capital of Ningbo Dingliaohuitong.

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