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OEL in MOU to buy oil & gas stake

CATALIST-listed OEL Holdings has entered into a non-binding memorandum of understanding (MOU) to buy a stake in a company indirectly involved with China oil giant PetroChina in developing two oilfields in China's Jilin province.
OEL will buy a 60 to 100 per cent stake in Hong Kong firm Allied Resources amounting to between S$22.5 million and S$37.5 million. Shares in OEL could be issued at 9.5 Singapore cents each to the seller or his nominee.
Currently incurring losses, OEL gets income from property rental and ship repair.
Allied Resources' wholly owned subsidiary, Jilin Hengli Industries, owns a 50 per cent interest in Qian An Oilfield Development. Qian An is a 50-50 joint venture between Hengli and PetroChina involved in extracting oil and natural gas from the two oilfields. The oilfields are currently in production, OEL said.