Apollo Resources International is to acquire 100% of JSC Kaliningradneft, an oil production company based in Kaliningrad, Russia. Apollo will facilitate the acquisition through a stock purchase agreement and is expected to complete the transaction in early March.
Kaliningradneft is currently producing 32,000 barrels of oil per month that fulfill annual European Union purchase contracts, with annual gross revenues of approximately $15 million.
Kaliningradneft holds a 25-year exclusive exploration and production license from the Russian government that covers approximately 300 square kilometers in the Kaliningrad region. Kaliningradneft has C1 certified oil reserves of 600,000 tons, or 4.32 million barrels.
We will be working closely with our new Russian partners over the next several weeks, and anticipate a long and prosperous relationship, stated Apollo CEO, Dennis McLaughlin. This acquisition is consistent with the company’s strategy of gaining access to long-term reserves with significant development potential.