Bloomberg is reporting:
Goldleaf Jewelry Co., a Chinese jewelry retailer with gold mining investments, plans to buy U.S. oil and gas operator ERG Resources LLC for at least $665 million.
The Beijing-based company will pay for the acquisition with a private share placement, raising as much as $940 million from no more than 10 investors, Goldleaf said.
Buying closely held ERG would give Goldleaf a foothold in oil assets along the Gulf Coast and California, adding to $16 billion of oil and gas deals announced by Chinese companies in the past year, according to data compiled by Bloomberg. ERG sold 13 oilfields to Australia’s Linc Energy Ltd. in 2011 for $236 million.
The number of producing acres was not provided in the press release, at least that I could see.
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