Yantai Xinchao Industry Co. (SHA:600777), a Shanghai-listed investment holding company, announced that it is purchasing oil fields in Texas for 8.3 billion yuan ($1.3 billion), through a deal with Ningbo Dingliang Huitong’s subsidiary, Moss Creek Resources.
The oilfields are being purchased by Moss Creek Resources from Tall City Exploration LLC and Plymouth Petroleum LLC, two Nevada-based companies, Xinchao said in a filing with the Shanghai Stock Exchange.
In the filing, Yantai Xinchao said it signed a letter of intent with Ningbo Dingliang Huitong Equity Investment Center, a limited liability partnership, and its seven shareholders to buy the oil fields through Ningbo Dingliang’s subsidiary, Moss Creek Resources LLC.
The transaction has already been approved by the U.S. Treasury’s Committee on Foreign Investment, it added.
Yantai Xinchao Industry Co., Ltd is engaged in property development and distribution, the provision of construction and installation services, as well as the manufacture and distribution of electronic components. The Company operates its businesses primarily in China.