This news is classified in: Traditional Energy Oil and Gas
Aug 2, 2016
Skyland Petroleum Limited ("Skyland" or the "Company"):
SKYLAND HAS EXECUTED a binding share purchase agreement with a private Russian company for the purchase of a producing oil and gas asset located in Eastern Siberia.
ACQUISITION OF THIS ASSET will, in the opinion of the board of directors;
be a landmark transaction in Skyland's history, bringing a substantial increase in the value of the Company's ongoing business.
be transformational, moving Skyland into a new league as a significant player in an area which will be one of the major sources of oil and gas for East Asia, China and indeed India in the future.
Acquisition of this asset places the Company in a unique position with respect to short to medium term cash flow and asset growth in what will become one of the most important oil and gas basins in the world.
FIELD PRODUCING OIL with currently limited production for the local market, which the Company intends to increase substantially following a successful acquisition, and the Company believes that it will commence much higher production for exports from 2018.
SUCCESSFUL CONTINUATION of Skyland's strategic objective: to become a world-class player in the production of oil and gas in East Siberia and to open channels for the supply of commercially viable hydrocarbons to emerging Asian markets. Skyland would become one of the very few international companies operating in this area.
DR. DAVID ROBSON - Chairman and Managing Director, commented:
"We are extremely pleased to have made such progress in East Siberia thus far and we look forward to completing this transaction subject to conducting further due diligence."
"This agreement fits in very well with our long term growth strategy. Skyland has actively reviewed several projects in this region and believes that this project is extremely attractive and provides a very good base for Skyland's entry into this prolific oil and gas province with export routes to the major east Asian economies. The Company certainly believes that this potential acquisition has the ability and the potential to substantially increase the value of the Company's business both in the short and long-term future."
"Our team has worked hard to ensure the projects selected to date will benefit the Company's stakeholders and shareholders and view the East Siberia project to be transformational, ultimately securing Skyland as a permanent player in the supply of energy to the ever growing economies of East Asia and particularly China."