Zoltav set to expand Russia operations
MOSCOW. Nov 13 (Interfax) - Zoltav, which purchased oil producer CenGeo Holdings Ltd last July, is thinking about expanding its Russia operations.
One of Zoltav's main shareholders, Bandbear Limited, has concluded an agreement with a third party on purchase of a host of oil and gas production assets in Russia.
Zoltav, in turn, signed an agreement of intent on November 12 to purchase those assets from Bandbear.
Zoltav shareholders must approve the acquisition at an extraordinary meeting. In that connection, the London Stock Exchange suspended trading in Zoltav shares from November 12, at the company's request.
Zoltav purchased CenGeo, its first oil producing asset, this summer for $26 million. CenGeo owns the license to produce oil at the Koltogorsky block in Western Siberia with 1P reserves totaling 73.5 million barrels of oil (about 10 million tonnes). Zoltav will invest another $20 million to develop the field.
Bandbear is Zoltav's second biggest shareholder with a 32.5% stake. The biggest shareholder is ARA Capital Limited, which is owned by tycoon Roman Abramovich's son, Arkady Abramovich.
