Pacific Asia Petroleum Inc., Hartsdale, N.Y., (OTCBB: PFAP) plans to acquire a participating interest in two producing areas onshore China from British Virgin Islands-based Well Lead Group Ltd. for $5 million in cash and $4.8 million in stock in a total deal value of $9.8 million.

            The assets include 25% interest in Northeast Oil (China) Development Ltd.’s 95% interest in oilfield blocks Fu710 and Meilisi723 covering 34 square kilometers in Fulaerjiqu Field in the Qiqihar City area of the Heilongjiang province. Pacific Asia has the option to acquire a further 14% interest, for a total 39%, for $5.5 million at closing.

            Pacific Asia president and chief executive Frank C. Ingriselli says, “We are excited about this opportunity to implement Pacific Asia’s plans to expand on our onshore oil-production opportunities in China. The current partners have drilled more than 20 wells in the fields with steadily increasing production.”

The companies intend to drill production wells during the next few years to maximize commercial production from the blocks.

Pacific Asia has E&P assets in Asia and the Pacific Rim countries, with a specific focus on developing a broad range of energy opportunities in China. SJP