Petro River teams up with Chinese outfit

US junior Petro River Oil has signed a memorandum of understanding with a Chinese oilfield services company to jointly develop oil and gas properties in the US.

Petro River said in a securities filing on Wednesday that Shenzhen-listed Sichuan Renzhi Oilfield Technology Services had agreed to pay $87.5 million for a subsidiary of the Houston-based company called PO1, which owns a 51% stake in Spyglass Energy.

Petro River bought Spyglass in a deal announced last month.

Spyglass owns properties in Osage County, Oklahoma.

Petro River and Renzhi will develop those properties together.

The two companies "intend to enter into one or more definitive agreements to effectuate the terms of the MOU", the filing said.

Petro River has agreements with other Chinese players as well, including a partnership with an unnamed services company listed in Hong Kong that operates in the US under the title Petro Spring.

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