Saturday, February 24, 2018

Essel Group ME Expands Its Oil and Gas Portfolio by Partnering with Eos Petro


LOS ANGELES -Friday, February 23rd 2018 [ AETOS Wire ]

(BUSINESS WIRE)-- Essel Group ME ("EGME") is pleased to announce its new partnership and significant equity investment into Eos Petro, an international oil and gas exploration and production ("E&P") company. The partnership with Eos Petro brings high-potential, producing assets and significant industry expertise to EGME.

* Established in 2011 and based in Los Angeles (US) Eos Petro is one of the most efficient and technologically advanced drilling E&P companies in the world. EOS's Management has continually demonstrated its ability to acquire, develop, and monetize oil and gas properties, completing more than $1.5 billion of A&D

* Eos Petro's primary strategy is to grow through accretive acquisition by taking advantage of current market conditions, plus additionally in focusing on acquiring and leasing properties in known oil fields, extending life and adding reserves through cost cutting, enhancing production, and evaluating and developing multi-pay zones

Eos Petro identifies producing assets in the US and internationally which have superior economics and offer scalable exploitation and development opportunities. The company owns the asset in the Illinois basin and is currently evaluating two producing assets in the US, both of which have significant proven, undeveloped reserves.

Eos Petro has partnered up with "MRRF/ SOLVENZ" to finance and complete its acquisition.

* The 'Illinois Works Property' is a 700-acre onshore site in the US that Eos Petro has owned and operated since 2011. It has proven reserves of ~290,000 barrels and probable reserves of ~600,000 and the potential to reach 400 barrels of oil equivalent per day (BOPD) from a current rate of 65 BOPD

* Eos Petro is in the process of completing the purchase of the WEFS assets in the Eagle Ford area from Crimson Energy Corp., in 2018 comprising of 26 producing wells over 12,000 net acres with proved and probable reserves PV10 value of $1.5 billion. Eos's incoming management team has already identified opportunities to triple current production from 2,900 BOPD to ~9,000 BOPD by the end of third quarter of 2018, by spending over $60million in new development capital

* Eos Petro is also exploring a 1.8 square miles project in offshore Ghana, where its application is under review

EGME will support Eos Petro in bringing the Texas and Illinois assets to full production, and in further developing the company's E&P activities.

Gagan Goel, Managing Director, Essel Group ME said, "I am delighted to welcome Eos Petro to the Group. Together we have the expertise and funding needed to unlock the huge potential of this business and its producing assets. This acquisition marks another important step for EGME as we expand our global portfolio of high-quality natural resources assets."

Nikolas Konstant, Chairman, Eos Petro said, "I speak on behalf of all my colleagues when I say how excited we are to join Essel Group ME. EGME is the perfect partner for us as we take the business into its next stage of growth."

About Essel Group ME

Essel Group ME ("EGME") operates subsidiary businesses in the natural resources, nuclear energy, financial services, industrial supply and logistics, and education sectors. Its natural resources portfolio includes oil and gas, potash and iron ore assets. EGME pursues growth through the acquisition of underdeveloped assets at competitive valuations. Currently, its anchor assets are located across Africa, where there is significant potential and a competitive cost environment.

EGME is a part of Essel Group, the Indian multinational conglomerate operating in a broad spectrum of industries including media, packaging, infrastructure and technology. Building on Essel Group's 90 year history of developing and promoting businesses, EGME is leading the expansion of the Group's presence in Europe, the Middle East and Africa.

For further information, please visit www.esselgroupme.com.

View source version on businesswire.com:  https://www.businesswire.com/news/home/20180222005575/en

Contacts

Essel Group ME
Kriti Ladsaria
+971 42793955
or
Finsbury
Dorothy Burwell / Charles O'Brien
+44 (0)20 7251 3801
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