mere months ago and primeline said "NO" to 197 million cap. its now a $28 mill cap with $35 mill in cash and cash flow. think about that......
Singapore-listed Loyz Energy Limited, an upstream player in the oil and gas sector, said it has reached a deal to acquire Primeline Energy Holdings (PEH) for about S$197 million, and the company also added that post the acquisition, it would seek to transfer of its listing from Catalist to mainboard.
PEH, that is listed on the TSX Venture Exchange in Canada, is an independent oil and gas exploration and production company focusing exclusively on upstream opportunities in China. It owns exploration and development rights in the East China Sea, China, via two petroleum contracts – Block 25/34 and Block 33/07 . The company is majority owned by Victor Hwang Yiou Hwa, who directly and indirectly, has approximately 60.1 per cent equity stake with the remaining 39.9 per cent held by minority shareholders.
Last month, PEH had said that it would acquire the entire legal and beneficial interest in Primeline Petroleum Corporation (PPC) from Victor Hwang Yiou Hwa. PPC, a company wholly-owned by Hwang Yiou Hwa , holds the working interest in Block 25/34 and Block 33/07. Post this deal, PPC will be a wholly-owned subsidiary of PEH. In consideration for the PPC acquisition, PEH will issue 44.7 million new shares in PEH to Hwang Yiou Hwa. After the completion of the PPC acquisition, Primeline Energy Holdings will have a 49 per cent working interest for Block 25/34 and a 100 per cent working interest for Block 33/07.
After PEH completes the acquisition of Prime Petroleum Corporation from Hwang Primeline Energy Holdings, it (PEH) will own 49 per cent and China National Offshore Oil Company (CNOOC) will own 51 per cent respectively of Block 25/34. CNOOC is the operator of Block 25/34.
Block 33/07 is a much larger offshore area of approximately 5,877km2 and is currently in the exploration phase.
Managing Director of Loyz Energy, Adrian Lee said the proposed acquisition would allow the group’s business scale, profits, cashflow from operations and net asset value to increase.
Existing shareholders of PEH include Fidelity Worldwide, with an approximate 10 per cent stake currently,” he added.