HISTORY OF REACH ENERGY
The REACH ENERGY logo is designed to exude strength and vibrancy. The word-mark REACH is constructed in semi bold lettering to convey the company’s firm and solid standing while the word-mark ENERGY is constructed in light lettering to convey the softer human aspect of our approach to the business. The letter A in REACH is stylized to resemble an oil derrick while the red “Flame Drop” graphic is a combination of an oil droplet (Oil) and a flame (Gas). Together these elements encapsulate the business REACH ENERGY is in – Oil & Gas.
Reach Energy was incorporated in Malaysia under the Companies Act 1965 as a private limited company on 7 February 2013 under the name of Reach Energy Sdn Bhd. On 2 August 2013 our company converted into a public company and was renamed as Reach Energy Berhad. Reach Energy Berhad is the 4th and the biggest Special Purpose Acquisition Company (“SPAC”) IPO in Malaysia, raised RM750 million and listed on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Securities”) since 15th August 2014. Of the RM750 million raised, 94.75% or RM710.62 million was placed in an Islamic trust or escrow account for which Amanah Raya Trustees Berhad is the custodian until it is used to pay for a qualifying acquisition (“QA”). The balance of funds will be used for listing expenses and as working capital of the company. Reach Energy’s securities (shares and warrants) have been classified as Shariah-compliant securities.
Reach Energy has been given three years to find their qualifying asset with a stringent criteria set by the Securities Commission Malaysia, i.e., mature producing field within Asia Pacific region and 2P reserves must be excess of 20 MMboe. After screening 50 over assets for the QA, on 5 March 2016, Reach Energy has entered into a tri-partite conditional Sale and Purchase Agreement with Palaeontol COOP and MIEH (collectively referred to as “Vendors”) for the Proposed Acquisition.
The Proposed Acquisition will entail Reach Energy acquiring 60% equity interest in Palaeontol B.V (“PBV”) comprising 10,800 PBV Shares. PBV is an investment holding company and is the sole interest holder of Emir-Oil LLP (“Emir-Oil”) which holds the entire working interest in an approximately 850.3 square kilometres onshore contracted area located in the Mangystau Oblast in the southwestern region of the Republic of Kazakhstan, about 40 kilometres northeast of the City of Aktau which is Kazakhstan’s largest sea-port in the Caspian Sea coast.
On 25th November 2016, Reach Energy completed the transaction to acquire 60% equity interest in PBV (a wholly-owned subsidiary of Palaeontol Cooperatief U.A. which in turn is an indirect wholly-owned subsidiary of MIE Holdings Corporation which is listed on the Main Board of the Stock Exchange of Hong Kong Limited) with a final transaction consideration of USD175.9 million. With another milestone notched under our belt, Reach Energy became the second Independent Oil & Gas Exploration & Production company to be listed on the Main Market of Bursa Malaysia. Reach Energy is the operator of Emir-Oil Concession Block with awarded Exploration and Production Contracts up to year 2036.
Reach Energy was incorporated in Malaysia as a private limited company on 7 February 2013 under the name of Reach Energy Sdn Bhd. It was converted to be a public company on 2 August 2014 under the name of Reach Energy Berhad.
Reach Energy has launched its Prospectus on 24 July 2014 and Hong Leong Investment Bank was appointed as Principal Adviser, Placement Agent and Underwriter. Reach Energy has officially listed on the Main Market of Bursa Malaysia Securities Berhad on 15 August 2014 with around 4000 shareholders.
Reach Energy was actively screening for Qualifying Acquisition candidates and was involved in many Oil and Gas Conference and Exhibition. Reach Energy has evaluated more than 40 candidates around Asia Pacific and Central Asia region before they found the right asset.
Reach Energy has signed the Sale and Purchase Agreement (SPA) with MIE Holdings Corporation on 5 March 2016 for 60% indirect stake in Emir-Oil LLP and has completed the acquisition on 25 November 2016 with 81.07% of shareholder support during the EGM. Reach Energy has been reclassified from SPAC sector to Industrial Products sector of Bursa Malaysia on 16 December 2016 with around 2000 shareholders.
Reach Energy is the operator of Emir-Oil LLP Concession Block and Ir. Shahul Hamid has been appointed as the General Director of Emir-Oil LLP on 6 March 2017. Reach Energy has gained full control on all operating functions on 25 May 2017 after an agreed 6 months of transition period with MIE Holdings Corporation.