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Bid to acquire company with operations in Kazakhstan, Russia and Azerbaijan.

Rosco SA, a subsidiary of Geneva, Switzerland-based Vitol Holding BV, has made an unsolicited bid for Arawak Energy Ltd., Jersey, U.K., (London, Toronto: AAK) valued at approximately C$164.4 million. Rosco will offer C$0.90 per Arawak share, which is a premium of 157% to the company's Toronto Stock Exchange closing price of C$0.35 on Oct. 27. Rosco currently holds 67.3 million Arawak shares and Vitol holds 8.4 million for a combined 75.7 million, or 41.4% of the 182.6 million shares outstanding. Arawak believes the offer is opportunistic and does not reflect the value of its shares, and recommends shareholders not take action at this stage. Arawak has oil and gas operations in Kazakhstan, Russia and Azerbaijan. In Kazakhstan, it holds five producing fields and two exploration blocks. Arawak has a 40% participating interest in the Saigak producing block and the remaining Kazakhstan assets are held through its subsidiary Altius Energy Corp. Altius' main producing field is Akzhar with smaller fields at Besbolek, Karataikyz and Alimbai. The two exploration blocks, East Zharkamys III and Tamdykol, are also situated in western Kazakhstan. Arawak's producing assets in Russia are held through PechoraNefteGas Recher-Komi in which Arawak has a 50% interest with the remaining interest being held by Lundin Petroleum AB. Also in Russia, Arawak holds a 100% interest in the Kymbozhyuskaya exploration block and in the South Sotchemyu appraisal block. In Azerbaijan, the company has interest in the exploration development and production-sharing agreement for the South West Gobustan oil and gas fields.