Malaysia’s DNeX has entered into a head of agreement (HOA) with Ping Petroleum to make an offer to acquire the remaining equity interest in Ping not currently owned by DNeX.
Ping Petroleum is an upstream company focused on shallow-water offshore production and development opportunities in the North Sea and Malaysia.
DNeX already owns a 30 per cent enlarged equity of Ping through a wholly-owned subsidiary company, DNeX Petroleum Sdn Bhd.
At the end of last year, DNeX’s investment in Ping stood at RM 216 million ($51.8 million).
Since 2016, Ping has built a balanced portfolio in the UK North Sea, including a 50 per cent of the Anasuria oil cluster.
The company’s operated portfolio consists of producing oil fields as well as other working interest in various assets within the North Sea, which are in development and exploration stage and have yet to start production.
Encik Mohd Azhar Mohd Yusof said the move to take full control of Ping will enable DNeX to benefit from full consolidation of Ping’s earnings and future growth with its well-balanced portfolio of production, development and exploration assets.
Ping is estimated to have proved and probable (2P) oil reserve of 25 million barrels equivalent (MMboe).
Upon completion of the proposal, Ping will be a wholly-owned subsidiary of DNeX and DNeX will be able to fully consolidate the revenue and earnings of Ping.