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Sona Petroleum Berhad (“Sona Petroleum”) will begin business as a SPAC listed on the Main Market of Bursa Securities as a company with no operational track record.

We intend to acquire equity interests in E&P companies (which could either be the operator or non-operator of the asset) with existing concession rights whereby the E&P companies have been granted exclusive rights by the host government, to explore, develop, sell and export oil and gas extracted from an acreage for a fixed period of time, the duration of which varies depending on, amongst others, the jurisdiction in which the asset is located as well as the terms negotiated with the host government.

Operators are responsible and have control over the management and execution of exploration / development / production operations. In any case, we would only acquire assets where we would have at least joint control over the operations as well as over the strategic and financial decisions of the assets.

On July the 21st 2014, Sona Petroleum and Salamander PLC announced the signing of a share, sale and purchase agreement that would provide Sona an effective 40% working asset in the B8/38 concession containing the Bualuang oilfield, along with the surrounding G4/50 concession, located in the Gulf of Thailand.

This deal could potentially usher in an exciting new phase for Sona Petroleum which had previously operated as a special purpose acquisition company since June 2013, when it received SC approval to list on the Main Market of the Bursa Malaysia exchange. Sona Petroleum brought together an experienced group of industry professionals dedicated to the acquisition of a qualifying asset which provided a balanced portfolio of production, development and exploration. The Greater Bualuang asset could provide just this opportunity moving forward.

This US$281.2m deal would provide Sona Petroleum with joint control of Salamander PLC’s flagship production asset, which currently produces an average of 12,330 barrels per day and is estimated by GCA to contained 31 million barrels of oil equivalent of 2P reserves and 18 million barrels of oil equivalent of 2C reserves. Sona expect this to be a lucrative and well realised asset, one which has already experienced 6 reserve upgrades since 2008. If realised it would result in Sona Petroleum moving from their SPAC status to becoming a listed exploration and production company.

On 29 August 2014, Sona submitted its proposal for the acquisition to Malaysia’s Securities Commission, and on 26 November 2014 received the regulator’s approval. This period however was characterised by uncertainty as a result of alternative bids tendered for the asset by rival companies, including Compañía Española de Petróleos (CEPSA) and Ophir Energy Plc.

While the offer from Compañía Española de Petróleos seems to have fallen by the wayside, that of Ophir Energy PLC could provide a challenge to Sona Petroleum’s potential deal with Salamandar Plc, having gained initial approval from some of Salamander’s shareholders. Nevertheless, until the full realisation of this deal, Sona assures investors that options remain available for other potential assets to provide for Sona’s qualifying acquisition. While bound by non-disclosure agreements, there are at least two other viable assets which could be considered by the company.

At this stage however, Sona remains dedicated to the deal that also has the Malaysian Securities Commission approach, which would see them gain a 40% stake in Salamander Plc. With the options still available to Sona and an 18 month window left on their special acquisition company to realise a qualifying asset, the focus clearly remains on the realisation of the deal with Salamander Plc. However, the opportunities do not end there.

The criteria that we intend to apply in selecting asset(s) for our Qualifying Acquisition is as summarised in the table below:



TYPE OF ASSET TYPE OF TARGET RESOURCES RISK PROFILE KEY CRITERIA
Exploration Prospective resources Higher Medium
  • Onshore and offshore shallow water depths (not more than 120 metres)
  • Proven basin
  • Availability of a list of prospects, leads and/or plays with verifiable prospective resources volumes
  • Availability of preliminary drilling and appraisal plan
Development Contingent resources/Reserves Lower Medium
  • Onshore and offshore shallow water depths (not more than 120 metres)
  • Newly discovered oil fields requiring further appraisal
  • Oil fields in advance stage of appraisal
  • Oil fields with approved FDP but where production has not commenced
Production Reserves Low
  • Onshore and offshore shallow waterdepths (not more than 120 metres)

  • Oil fields currently in production

 

 

 

Sona Petroleum
Sona Petroleum Berhad was formed by
a group of experienced senior professionals
who are passionate about and are active in
the oil and gas industry.

Sona Petroleum Berhad
(formerly known as Titanium Windfall Sdn Bhd)
Level 24, Menara 3 PETRONAS,
Persiaran KLCC, Kuala Lumpur City Centre,
50088 Kuala Lumpur, Malaysia
Tel: +6 03 2164 3318
Fax: +6 03 2164 3691

©2014 Sona Petroleum Berhad (Company No. 945626-P)