UOB-KayHian - Sona Petroleum (SONA MK) which was listed back in end-July, would likely be announcing the acquisition of some qualifying assets (QA) soon. According to channel check, the company is looking at some of the O&G assets in SGX-listed RH Petrogas, which currently owned a full spectrum (i.e. from exploration to production) assets that are located in China, Indonesia and Malaysia. In line with Datuk Seri Hadian's guidance during the IPO launch, SONA would be keen to first buy up some producing assets which have steady cash flow to fund future acquisition of development and exploration blocks - which thus makes RH Petrogas 's assets do look appealing to SONA.
Not surprisingly, RH Petrogas would want to rope in a strategic partner given that sizeable capital would be required for the on going development for the Fuyu-1 block as well as continuous development and exploration drilling for the two matured basins i.e. Basin and Island PSC. With the projected capex of around US$30m to US$40m on the horizon, RH Petrogas would likely be doing few more cash call to fund the above developments, in our view.
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Posted by stonenut > 2013-09-24 15:44 | Report Abuse
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