LUKoil Overseas plans to complete the acquisition of U.S.-based Chaparral Resources by the end of the year, the international projects operator of LUKoil said Tuesday.
A merger agreement signed March 13 envisions that LUKoil Overseas will buy Chaparral stock at $5.80 per share. LUKoil Overseas bought 60% of Chaparral Resources shares in December 2005 as part of the other assets of Nelson Resources Limited. The remaining shares of stock of Chaparral are owned by many minority shareholders and circulate on the U.S. stock market.
Akin Gump Strauss Hauer & Feld is the deal's legal adviser, and Aton Capital is the deal's financial adviser.
Chaparral Resources Inc. was founded in 1972 in the U.S. and has operated exclusively in Kazakhstan. Chaparral Resources and LUKoil Overseas co-own KarakudukMunai, a Kazakh joint-stock company holding a state license to develop the Karakuduk oil deposit. LUKoil Overseas controls 76% of KarakudukMunai company.
The Karakuduk deposit was discovered in 1972. KarakudukMunai was given a 25-year license for the deposit's development in 1995, and work to develop the deposit was started in 2000. A total of 3.7 million barrels of oil was produced at the deposit in 2005. Proven reserves constitute 50 million barrels. |
