Perth-based Monitor Holdings Ltd yesterday entered into a conditional agreement with Kyrgyz registered company White Valley Oil LLC to purchase 100 per cent of it's issued capital.
The news resulted in Monitor's share price rising 0.8 cents yesterday to close at 1.9 cents and is currently trading at 2.4 cents.
White Valley Oil develops oil and gas exploration opportunities in the Kyrgyz Republic and adjacent regions in Central Asia.
Monitor said it has been encouraged to make this acquisition following the recent commitment by Santos Ltd to enter into a $28 million farm-in agreement with Caspian Oil & Gas Ltd over its extensive Kyrgyzstan oil and gas licences.
Board changes have been implemented to reflect Monitor's oil investment and geographic location, including the appointment of Scott Spencer, a current non-executive director of Hardman Resources Ltd, as non-executive chairman.
In addition, Ted Ellyard, former managing director of Hardman Resources Ltd, will act as an advisor to Monitor.
The company intends to raise approximately $400,000 through a placement of ordinary shares to provide working capital for the immediate six month program that will enable it to pursue its initial exploration and acquisition plans focused in the emerging Central Asian oil and gas fields.
This region is strategically located and vital to the world's growth economies of China, India, Russia and Eastern Europe.
White Valley Oil currently holds a 4,500 sq km petroleum exploration licence in the Kyrgyz Republic and is actively reviewing further opportunities.
The licence is regarded as the initial investment by Monitor Holdings as part of a strategic decision to diversify its business operations. Monitor will, as part of its working capital budget, consider further energy related opportunities.
