Hong-Kong based New Times Energy acquired a 42.1 percent stake in investment holding firm Full Charming for $6,019,572 in cash and stock Monday.
China-based Full Charming holds a 95 percent equity interest in services and transportation company Panjin Liaohe Shuguang.
New Times will pay $1,612,788 in cash and issue 68,310,000 shares to Full Charming at 0.06 per share to cover the remaining balance.
The shares represent approximately 5.8 percent of New Times’ existing issued share capital.
China-based Shuguang owns a general trading business and also manages oil pipeline connections, transportation and distribution.
Shuguang will ship a drilling rig to New Time’s drilling programs in the Tartagal Oriental, Morillo and other blocks in Argentina.
New Times holds 60 percent stakes in Tartagal Oriental and Morillo blocks.
The deal was entered into by New Times’ wholly owned subsidiary Total Belief.
“The acquisition will bring the company into a new sector of oil field services in China and facilitate and synergize the company’s exploration and development of its existing projects in Argentina,” executive director of New Times Energy Stewart Cheng said.