19th Nov 2015 12:05
LONDON (Alliance News) - Urals Energy PCL said Thursday it has acquired two private Russian companies, RK-Oil Ltd and BVN Oil Ltd from Ilya Glebov for USD5.3 million.
It will pay USD2.7 million in cash and USD2.5 million through the assumption of debt and other liabilities. The acquisitions will be funded from the company's cash resources and a new working capital facility from Sberbank it agreed in June.
The two companies were formed in 2014 to participate in public auctions for oil exploration and production licences in Russia's Komi region. Following these auctions both companies hold licences in this region.
"These acquisitions fit into our strategy of acquiring licenses for exploration selectively at times of low oil prices and undertaking initial exploration, but waiting until conditions improve before further developing such assets. These are the first steps in rebuilding the asset base of Urals Energy," said Chairman Andrew Shrager in a statement.
Shares in Urals are up 2.5% at 2.69 pence Thursday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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