Pacific Energy Development's interest in Kazakhstan is located in the eastern portion of the Pre-Caspian Basin, an active exploration area with presence of major oil and gas companies.© pacificenergydevelopment.com
WASHINGTON, September 18 (RIA Novosti) – California-based energy firm Pacific Energy Development has announced an agreement to acquire a 34 percent interest in an area located in the largest oil and gas producing basin in Kazakhstan, marking the company’s entry into the country, according to an official statement from the company.
The 380,000-acre (153,780-hectare) zone in the North Block of Kazakhstan’s pre-Caspian basin is under contract to Almaty-based Aral Petroleum Capital, which currently holds a 100 percent interest in the area, the statement said.
“Not only is the large contract area of 380,000 acres within the largest producing basin in Kazakhstan, it is also in close proximity to some of the most prolific oil producing properties in the Republic of Kazakhstan, including the two largest oilfields owned by Chevron Corporation,” said Pacific chief executive Frank Ingriselli in the statement.
Pacific Energy announced Monday that it in order to acquire a 34 percent stake in Aral it agreed to take a 51 percent controlling interest in Asia Sixth Energy Resources which holds a controlling interest in Aral.
Pacific Energy has paid an initial deposit of $8 million, and plans to secure funds to complete the deal by September 2014, subject to meeting closing conditions and gaining approval from the Kazakh government the statement said.
Aral produced about 86,910 barrels of oil equivalent (BOE) from five wells in Kazakhstan last year according to the statement.
Pacific Energy said Aral was currently reworking and retesting other wells within the contract area and testing should be completed on a total of four wells by the end of this year.
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