Loyz Oil, the operating oil and gas (O&G) exploration and production (E&P) arm of Sim Siang Choon Limited, today finalised the cooperation agreement with Rex Oil & Gas Limited, which will spur the Group on its way to becoming an independent oil player in the upstream energy sector.
Under the agreement, Loyz Oil and Rex will jointly carry out exploration activities in 35 areas across the Asia-Pacific using the latter's proprietary technologies which may reduce exploration risks and costs.
Mr Adrian Lee, the executive director of SSC, said: 'We are excited about this strategic partnership and look forward to working with Rex to lift our capabilities and expertise in the E&P segment. With Rex's proprietary technologies expediting and enhancing the evaluation process for potential hydrocarbon concessions, we hope to distinguish ourselves as an E&P company with unique capabilities. We are now one step closer to becoming a niche player in the O&G upstream sector.'
In May, the Group proposed to raise $12 million to expand its hydrocarbon concession portfolio and augment its working capital via the issuance of 12 million Loyz Oil redeemable exchangeable preference shares. These shares are convertible into 30 million new SSC shares at an exchange price of S$0.40 per SSC share, or they may be redeemed at S$0.25 per share. This proposed placement is subject to shareholders'approval at an at a general meeting to be held on Monday, 25 July 2011.
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