KUALA LUMPUR: Dialog Group Bhd's wholly-owned Singapore subsidiary Dialog Systems (Asia) Pte Ltd has entered into a conditional agreement with Pan Orient Energy Corp to acquire its entire equity interest for US$38.7mil (about RM170mil) cash.

       According to a filing with Bursa Malaysia, Pan Orient Energy is an Alberta, Canada-incorporated corporation listed on the TSX Venture Exchange.

       Upon finalisation of Dialog's proposed acquisition, Pan Orient Energy will be delisted.

       Pan Orient Energy, through its wholly-owned Singapore incorporated subsidiary Pan Orient Petroleum Pte Ltd, holds 50.01% equity interest in Pan Orient Energy (Siam) Ltd, which is the operator of Concession L53/48, onshore Thailand.

       "As concessionaire and operator of Concession L53/48, Pan Orient Energy produced approximately 2,700 barrels of oil per day) from seven oil fields in Thailand in 2021 with plans to increase production in the future.

       "The current production offtake is to a local refinery. POES has 2P (proved plus probable) oil reserves of 4.6 million barrels as at Dec 31, 2021," said Dialog.

       Dialog presently has an oilfield service contract for Bayan field since 2012 and a Production Sharing Contract for D35/D21/J4 since 2014.

       The proposed acquisition is Dialog’s first upstream venture outside of Malaysia for mature upstream oil producing fields, paving the way for Dialog to move further up the value chain in the upstream business.

       "The proposed acquisition is in line with Dialog’s strategy to continue to expand and diversify across the upstream, midstream, downstream and renewable businesses of the energy sector, thereby increasing opportunities for synergies within Dialog Group.

       "Dialog will remain focused and steadfast in the pursuit of diversification across the energy sector to strategically position the Group to weather different economic and oil price cycles, and is optimistic of the future prospects of POES contributing positively to the group’s results, which is in line with the group’s strategy of generating long-term recurring income," it said.