Park Place Energy Inc.has received the final regulatory approval to purchase three oil and gas exploration and production companies operating in Turkey owned by Tiway Oil BV. With all required regulatory approvals now in hand, the Company and the seller are now working on the documentation to close the transaction. Closing is anticipated to occur later this year or in January 2017.
As previously announced, in December 2015, the Park Place entered into a Share Purchase Agreement with Tiway to acquire the three subsidiaries of Tiway. The Tiway Companies are oil and gas exploration and production companies operating in Turkey. They own interests in three producing oil and gas fields, one offshore and two onshore, as well as a number of exploration licenses and operate one of the onshore fields. The purchase price for the Tiway Companies is US $2.1 million.
The effective date of the transaction is January 1, 2016. The transaction was subject to the satisfaction of several closing conditions, including the approval of Turkish gas marketing agency, the Energy Market Regulatory Authority of the Republic of Turkey, and the approval of the Turkish agency that regulates petroleum affairs, the General Directorate of Petroleum Affairs of the Ministry of Energy and Natural Resources of the Republic of Turkey, both of which have now been obtained.
The Tiway Companies report that current production is about 300 Boe/d. Approximately 2/3s of the production is gas. The Company is planning operations to enhance gas production levels post-closing.
In Bulgaria, the Company is still awaiting clearance to commence its license activities. In April 2014, the Company entered into a license agreement covering a coal bed methane play in Northeast Bulgaria. Prior to commencing work on the license, the Company secured the approval from the Bulgarian environmental agency of its work plans. This decision was appealed to an administrative court. The most recent administrative court proceedings appear favorable and it is anticipated a decision will be forthcoming in early 2017.