Pacific Asia Petroleum acquires China interests from the BVI group

Pacific Asia Petroleum Inc., the U.S. corporation specially focused on developing a broad range of energy opportunities in China, informed about its plans to acquire interest in two producing areas onshore China from BVI-based Well Lead Group Ltd., for a total deal value of $9.8 million - $5 million in cash and $4.8 million in stock. Purchased stock includes 25% interest in Northeast Oil (China) Development Ltd.'s 95% interest in two oilfield blocks covering 34 square kilometers in the Heilongjiang province. Also, the US company has the option to acquire additional 14% interest, for a total $5.5 million at closing, and the total share of the company will reach 39%.

Frank Ingriselli, Pacific Asia president and chief executive, commented that this acquisition will allow Pacific Asia to expand on its onshore oil-production opportunities in China. Both the US and BVI companies are planning to drill production wells during the next few years to maximize commercial production from the China blocks.