HBOil JSC (MSE: HBO; Bloomberg Code: HBO MO; “HBOil”), is pleased to announce that its Board of Directors has unanimously voted to issue HBOil common shares, in consideration for the short term Convertible Loan Agreement (CLA), which was used to acquire 100% of Ninox Hydrocarbons (L) Berhad (now known as “HBOil [L] Berhad”), a private Malaysian company which holds 20% of the share capital of KOEC International, Inc. (“KOECII”). The remaining 80% of the share capital of KOECII, is held by HBOil’s Joint Venture partner Korea Oil Exploration Corporation (“KOEC”), which is the national oil company of the Democratic People’s Republic of Korea (“DPRK” or “North Korea”).

HBOil also has the pleasure of announcing that it has acquired roughly 12% of the capital of Ninox Energy Limited, a Singaporean entity that owns through Korex Ltd.; 100% of the Production Sharing Contract (“PSC”), which covers the  offshore territory of DPRK in the East Sea. This acquisition by HBOil, via the redemption of its convertible notes in Ninox Energy Limited, now provides HBOil and its shareholders with an approximate 12% indirect interest in the potential hydrocarbons resources in the East Sea of DPRK; effectively, concluding HBOil’s previously announced option to acquire up-to 51% of Ninox Energy’s interest in the East Sea PSC. 

 

 

Public Relations Department

MONGOLIAN STOCK EXCHANGE