TGER exploits new Oil Field in Jilin.
The project company (TGER) intends to acquire the 50% interest in the reserves of four blocks located in Jilin province, and start a Joint Venture with Petro China. The deal structure proposed is for the Equity Partner to receive 45% of the 50% and TGER will receive 5% of the 50% of the Proved Reserves (3,379,000 bbls). The acquisition involves purchasing proved producing reserves with a development plan of hydrojetting 35 wells with 3 zones in each well. This technology was applied to 6 wells in another part of the Jilin Oilfield with a 3 fold increase in production from one zone.
Investment – $52 million;
Payout – 3.2 years;
ROR – 24%;
Current Production – 450 bbls/day;
Oil Buyer – PetroChina Company;
Superior management of existing production;
More industry experience from US professionals;
This project is a yield risk not a capital risk due to the significant portion of proved producing reserves being used to secure the asset.
For more information, please click here.