- Resources company, Silk Energy (SILK) has received approval for transfer of ownership of UnionField Group to its Norwegian subsidiary
- The subsidiary, Silk Energy AS, purchased all shares in UnionField from Right Way through issue of a convertible debenture
- The Republic of Kazakhstan’s Ministry of Energy finally provided the approval, after facing delays related to the COVID-19 pandemic
- With this approval, Silk Energy is closer to completing all necessary steps for listing on the Canadian Securities Exchange
- Silk Energy (SILK) has yet to post a share price movement
Resources company, Silk Energy (SILK) has received approval for transfer of ownership of UnionField Group to its Norwegian subsidiary.
UnionField is a British Virgin Islands company, which holds a 50 per cent participating interest in a Kazakhstani LLP. That limited liability partnership has an exploration license for the Ustyurt property in Kazakhstan, a potential oil and gas asset.
Silk’s subsidiary, Silk Energy AS, has contracted to purchase all shares in UnionField from the vendor, Right Way. The purchase occurred through the issue of an approximately C$27.3 million convertible debenture, which bears interest at 6 per cent.
Silk Energy AS also assumed responsibility for funding UnionField’s contributions to the LLP, as part of the purchase.
Approval for transferral of UnionField to Silk Energy AS came from the Republic of Kazakhstan’s Ministry of Energy. The Ministry finally provided the approval, after facing delays caused by the COVID-19 pandemic, and the resulting lockdowns.
In reaction to the pandemic, Kazakhstan declared and entered into a State of Emergency in March of 2020, with various stages of quarantine following.
With this approval now in hand, Silk Energy can focus on completing the necessary steps for listing on the Canadian Securities Exchange. The company is also working to list on the London Stock Exchange (LSE).
Once listed, Silk’s first drilling target will be the Salken Prospect, located East of the 6,500 square kilometre license area.
A report completed by McDaniel & Associates stated that Salken could have mean unrisked prospective resources of 66.432 million barrels. The report also mentioned a low case of 10 million barrels, and a high case of 145 million barrels.
Silk Energy (SILK) has yet to post a share price movement.