Reach Energy to submit QA proposal by next month

KUALA LUMPUR: Reach Energy Bhd is targeting to submit the proposal of its maiden acquisition to the Securities Commission by next month.

Managing director and chief executive officer Shahul Hamid Mohd Ismail said the company targets to complete the proposed acquisition by September this year as it has signed a six-month sale and purchase agreement with the vendor.

“We have been looking at this asset since August and we think it is the right time to make an acquisition in the oil and gas (O&G) industry due to the low oil price environment,” he said at a briefing on Wednesday.

Reach Energy, which is the fourth special purpose acquisition (SPAC) listed on the main board of Bursa Malaysia and also the largest, announced its maiden acquisition of an onshore O&G field located in Kazakhstan on March 5.

Notably, the deal is expected to cost about US$154.9mil (RM638.2mil) for a 60% equity interest in Palaeontol BV, who is the owner of Emir-Oil LLP which in turn, holds full working interest in an onshore block in Mangistau Oblast in Kazakhstan.