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| Further Diversifies Investment Portfolio within the Energy Sector |
HONG KONG, May 7, 2014 - (ACN Newswire) - Eagle Ride Investment Holdings Limited ("Eagle Ride" or the "Company;" stock code: 901) has entered into a membership unit purchase agreement and other ancillary agreements ("agreements") with Vaca Energy, LLC ("Vaca"), a company engaged in crude oil and natural gas exploitation, development and production with operations in California, on 30 April 2014.
According to the agreements, Bounce Up Investments Limited, a wholly-owned subsidiary of the Company, will purchase 1,322,843 Class A Units from Vaca at a consideration of approximately US$3 million.
Vaca spreads across around 500 acres of leasehold property located in Ventura County, California, approximately 50 miles northwest of Los Angeles, and has an estimated 27 million barrels of proven, probable and possible oil reserves out of approximately 82.5 million barrels of original-oil-in-place.
Vaca is of attractive investment value, given that its adoption of Enhanced Oil Recovery ("EOR") technology to releasethe recovery potential. Starting from December 2012, the management initiated cyclic steam injection and has steadily increased production to approximately 300-500 barrels of oil per day ("BOPD"), which should rise to 500-600 BOPD, once the initial cycle is completed. This should significantly boost economies of scale, lower the extracting cost and increase both the output and the operating leverage.
Mr. Tung Shu Sun, Chairman of Eagle Ride, said, "This investment is in clear alignment with the investment objectives and policies and the long term development strategy of the Company to diversify further within the energy sector. Going forward, we will leverage the extensive experience of the management team and professional experts, and continue to explore other potential energy investment projects, particularly in the United States. In this way we can strengthen Eagle Ride's profitability and generate satisfactory returns for shareholders."
Contact:
Strategic Financial Relations Limited
Joanne Lam +852 2864 4816 joanne.lam@sprg.com.hk
Cornia Chui +852 2864 4853 cornia.chui@sprg.com.hk
Jovanni Cai +852 2114 4937 jovanni.cai@sprg.com.hk
Topic: Press release summary
Source: Eagle Ride Investment Holdings Limited
Sectors: Gas & Oil, Daily Finance, Energy, Alternatives, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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