DWM Petroleum AG (“DWM”), a wholly-owned subsidiary of Manas, is in the process of acquiring existing oil producing assets whose present output has the potential to be restored to earlier levels (between 50 and 3500 bopd per well) and possibly increased beyond that through the rehabilitation of these fields which are presently producing 300 bopd from depths greater than 100m. These fields are presently run-down due to the break-up of the Soviet Union when the disappearance of ongoing investment coupled with the lack of access to newer technology resulted in these fields not being maintained. In addition to the assets’ rehabilitation potential for these fields, they have upside potential for additional development, exploration and appraisal. Effective September 27, 2013, and subject to obtaining any regulatory approvals or consents DWM has opted to acquire 65% of the company that presently owns a majority interest in the Tajik operating company which holds the oilfield assets for an amount equivalent to USD 10.1 million dollars. This transaction is scheduled to be closed prior to year-end 2013. In addition, DWM is in actively in discussions with an investment group to provide the funding to acquire the remaining shares in the Tajik operating company as well as provide the necessary funding for the rehabilitation program. In parallel, DWM’s technical field studies are continuing with more than 300 wells being analyzed and an initial work program in development. Presently there are approximately 100 wells are ready for work-over operations. |