DUBAI, United Arab Emirates--(Business Wire)--
RAK Petroleum PCL, the oil and gas exploration and production company, announced
today that it has acquired Indago Ventures 31 Limited and Indago Ventures 47
Limited, both wholly-owned subsidiaries of UK-based Indago Petroleum Limited,
which hold exploration rights in two concessions in the Sultanate of Oman.
The acquisition of Indago`s 50 percent share in Oman`s Block 31 and 47 brings
RAK Petroleum`s interest in these blocks to 100 percent. RAK Petroleum acquired
its existing 50 percent interest in these two concessions from Indago in 2007 as
part of a wider transaction including a 40 percent share of Oman`s Block 8.
Block 8 contains the offshore West Bukha oil field which came on production in
February.
As consideration for the latest transaction, Indago made a payment to RAK
Petroleum of $3.5 million in relation to a release, subject to certain
warranties, from all possible obligations arising from their joint activities
and past transactions.
"The acquisition of these two companies and the acquisition of Eagle Energy
(Oman) Limited holding a 10 percent share of Block 8, which RAK Petroleum
announced last week, highlight the intention to actively and aggressively expand
our exploration and production assets in the region," stated Abdulaziz Al
Ghurair, Chairman of RAK Petroleum`s Board of Directors. "RAK Petroleum is well
positioned with significant cash reserves and is on the lookout for suitable
opportunities to add to our portfolio," he explained.
"RAK Petroleum plans to drill the Zad-2 well in Block 47 later in 2009," stated
Bijan Mossavar-Rahmani, RAK Petroleum`s Managing Director and Chairman of the
Executive Committee of its Board of Directors. "If successful, the Zad prospect
provides the potential of a significant gas and condensate field in a prime
location only 10 kilometers from an existing pipeline accessing Oman`s growing
gas markets," commented Mr. Mossavar-Rahmani. "The exploration well will test
the Amin sandstone reservoir, an analogue of the nearby Kauther field," he
noted.
RAK Petroleum PCL is registered in the Free Trade Zone of the Emirate of Ras Al
Khaimah and is operator of eight blocks located in the Sultanate of Oman and in
the United Arab Emirates, of which six are in the exploration phase and two are
undergoing appraisal for possible redevelopment.
*Source: ME NewsWire
RAK Petroleum Technical Services
Alain Duport, General Manager, +971-4-332-5444
alain.duport@rakpetroleum.ae
or
Buchanan Middle East
Rana Al Bechara, Media Relations Director, +971-4-423-9305
rana.albechara@buchananme.com
Copyright Business Wire 2009
