sounds like they are really planning on going for it CITIC...

sounds like they are really planning on going for it

CITIC Resources (1205) yesterday announced that the flag �r Seram spend 97.4 million U.S. dollars (about 7.597 billion), Kufpec acquisitions contractor to the oil companies in the production of Seram Non-Bula divided into blocks of 51% contract into interests.

The company said that the block averaged approximately 4,300 barrels per day of oil etc., the company is expected to bring between 1923 profit contribution to the development of the energy business represents an important step forward.

According production into contracts, the contractor mandated Seram Non-Bula blocks in Indonesia exploration, development and production of oil until 2019 only. Kufpec and existing contractors, including Lion, holding 97.5% and 2.5% respectively contractor. After completion of the transaction, will hold Seram Non-Bula �r Seram blocks into a 30% interest 51%,KUFPEC third party companies and Lion holding 16.5% and 2.5% respectively.

720 million paid in cash

In a sale and purchase agreement, �r Seram already paid 5 million U.S. dollars (about 39 million Hong Kong dollars) deposit and the remaining amount of 92.4 million U.S. dollars (about 7.2072 billion) will be paid in cash. The Indonesian government has yet to be issued relating to the transactions written permission.

CITIC Resources vice chairman Sau Yuen Yuen-cheng says that the main oil fields Seram Island Non-Bula blocks for Oseil oilfield, the first six months of this year averaged approximately 4,300 barrels per day of oil drive. The blocks at the beginning of this year started production in 1923 is expected to bring a profit for the company contribution, the cost of production is about 20% of the price per barrel.

He expected that the output will gradually increase, 1923 will be produced after the peak, oil prices than currently blocks about 10% to 20% discount international oil prices, investment banks expected to start three years after the contract period ex-factory is about 40 to 50 U.S. dollars.

Continued opportunities for acquisitions

He said that confidence blocks from the beginning of the fourth quarter of the income can be recorded, and because the project has substantial reserves, and basic infrastructure has been completed, it is estimated that further investments in the future will not be too much. Currently the company about 100 million U.S. dollars in cash on hand, bank credit of over 200 million U.S. dollars, raising pressure does not exist.

He noted that this acquisition as a first step companies overseas acquisitions, the future will be in Southeast Asia and other regions to seek different forms of acquisition opportunities.

CITIC Resources believe that the acquisition of the company represents an important step in the development of the energy business and become a company with the ultimate parent company of CITIC Beijing natural resources flagship company's long-term development strategy. By stimulating news, CITIC Resources reported yesterday closing 1.36 billion, an increase of 5.43%.