(EnergyAsia, October 4 2012, Thursday) — Three Singapore-listed companies involved in the upstream oil and gas industry have provided updates on their recent activities.
Loyz Energy has agreed to sell off its non-core sanitary ware division to focus on becoming an independent upstream player in the Asia Pacific region while Interra Resources has completed drilling a deep well at its Chauk field in Myanmar. Subsea services provider Kreuz Holdings said it will transfer its Catalist listing to the Singapore Exchange main board on October 8.
Loyz said it has signed an agreement to sell off its sanitary ware division under fully owned subsidiary Sim Siang Choon Hardware Pte Ltd (SSCH) for S$9 million, valuing each share at S$4.50, to Sim Siang Choon. (US$1=S$1.22). SSCH is a retailer and distributor of household and lifestyle accessories.
If shareholders approve the deal, the company said it will use the net proceeds of S$7.3 million, after offsetting an outstanding sum of S$1.7 million in director’s loan owing to Mr Sim, to augment its working capital as well as pursue oil and gas opportunities.
Adrian Lee, Loyz Energy’s executive director, said:
“This sale effectively transforms Loyz into a full-fledged, Singaporean-owned independent E&P company as we will be able to dedicate all our resources to growing our upstream energy business.
“We are now one step closer to realising our vision – of becoming a significant independent player in the E&P industry, first in the Asia-Pacific and then beyond. We plan to build a balanced portfolio of both producing and exploration prime concessions that will provide the Group with a robust and sustained earnings stream.
“Our portfolio has attractive, long-term growth potential and we intend to embark on a measured exploration and development programme in the next few years.”
Over the past two years, to advance its long-term growth plans, Loyz has assembled an experienced management team to drive the business, formed strategic alliances with seismic technology partners GEO EAST Co Ltd and Rex Oil & Gas Ltd as well as built up its concessions to drill for oil and gas.
Interra Resources, which operates in Myanmar and Indonesia, said its joint venture company Goldpetrol has completed drilling at the CDT12 deep well at the Chauk field in Myanmar.
While it is too early to say if the drillings will lead to the discovery of commercially recoverable hydrocarbons or production, the company has described the results as being “very encouraging.”
Kreuz Holdings, which listed on theCatalist board on July 29 2010, is the subsea services division of Singapore Exchange-listed Swiber Group.
Describing the transfer as an exciting and significant milestone for the company, Kreuz’s executive director and CEO ,Kurush Contractor, said:
“We are seeking to grow through increasing our market share in the Asia Pacific and India, coupled with entry into new markets. This corporate development will potentially lead to new opportunities arising from our increased profile after the transfer.”