A wholly -owned subsidiary of Dagang NeXchange Bhd (DNeX), DNeX Energy Sdn Bhd bought an additional 60% stake in Ping Petroleum Ltd for US $ 78.0 million, increasing its stake in the company to 90%.
Ping is an upstream oil and gas company with a balanced portfolio producing and developing oil and gas assets in the Anasuria Cluster located in the North Sea, United Kingdom (UK).
DNeX in a statement today said the acquisition will be paid for through a combination of US $ 40.95 million in cash and the issuance of new ordinary shares in DNeX.
He said that also included new redeemable preference shares in DNeX Energy for the remaining US $ 37.05 million.
The company added that through the acquisition, DNeX will be able to incorporate Ping's financial performance into the group's earnings starting this month and beyond.
According to DNeX Group Managing Director, Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, the increase in Brent crude oil price above the US $ 70 per barrel level gives good prospects to the company's energy segment.
“In this regard, we will expand our business in the upstream oil and gas sector to capitalize on this upward trend.
"To increase our production in the Anasuria Cluster, we have allocated about US $ 71 million for redevelopment activities over the next five years," he said, adding that it included well drilling activities and facility improvement works.
"Ping's expansion plan will be focused on leveraging the potential of other post -development assets in the UK and the Southeast Asian region," he said as reported by Bernama.
According to Syed Zainal, his party also plans to implement a long -term strategy to realize Ping's long -term growth potential.
He explained that the overall prospects of DNeX Energy are convincing with various exciting development plans.
On other developments, the company said the post -acquisition of Ping would be led by Zainal Abidin Jalil as managing director and Datuk Robert Fisher as chairman.
Fisher is currently an independent non -executive director of DNeX while Zainal Abidin sits on the board of DNeX as an executive director.
