In a filing with Bursa Malaysia yesterday, DNex said it has entered into a heads of agreement (HoA) with Ping Petroleum to acquire the remaining shares it does not own.
Ping Petroleum is an upstream company focused on shallow-water offshore production and development opportunities in the North Sea and Malaysia.
At the moment, DNex owns 30% stake in Ping through its associate company DNeX Energy.
“The HoA is not legally binding and is subject to the signing of the definitive SPA, ” DNex said, adding that the HoA will expire on Oct 31 unless extended.
DNex said the proposal will enable the company to benefit from Ping’s future earnings in view of its potential to grow organically with its balanced portfolio of production, development and exploration assets. Ping is estimated to have proven and probable oil reserves of 24.8 million barrels equivalent.
DNex said the impact by the coronavirus pandemic to the group is manageable as most of its projects were ongoing as usual. “Our services continue to operate as usual during the MCO as part of essential services albeit with extra precautions for workers and travel.”