Novatek Buys Two Russian Hydrocarbon Assets

By Adam Clark Features Dow Jones Newswires

Novatek (NVTK.MZ) said Wednesday that it has acquired two Russian hydrocarbon assets from AR Oil & Gas B.V., a joint venture of AO Neftegazholding and Spain's Repsol S.A. (REP.MC).

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Novatek said it bought AO South-Khadyryakhinskoye and AO Eurotek for an undisclosed price.

The company said AO South-Khadyryakhinskoye holds the hydrocarbon exploration-and-production license for the South-Khadyryakhinskiy area, close to its existing North-Khancheyskoye field. Novatek said the license contains estimated hydrocarbon resources of 228 million barrels of oil equivalent.

AO Eurotek holds the hydrocarbon exploration-and-production license for the Syskonsynyinskiy area, in the Khanty-Mansiysk Autonomous Region. The license contains estimated hydrocarbon resources of 48 million barrels of oil equivalent.

Novatek Chairman Leonid Mikhelson said the acquisition will contribute to the company's total production and increase the resource base of its core area of operations.

Moscow-listed shares are up 4.10 rubles, or 0.6%, at 673.90 rubles at 0857 GMT.

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Write to Adam Clark at adam.clark@dowjones.com; @AdamDowJones

(END) Dow Jones Newswires

December 06, 2017 04:25 ET (09:25 GMT)