Ready for a ride in the wild wild east: Australian independent buys up rights to explore for hydrocarbon in Mongolia.
Oz outfit eyes Mongolia oil wealth
Australia listed BKM Management is set to acquire SMG Oil & Gas, a Mongolia-based outfit licensed to explore in the Baitag region next to China’s oil-rich Xinjiang state.
SMG has been awarded a contract by the Mongolian government to carry out an oil exploration geological survey in Baitag’s Block 30.
Block 30 covers 14,737 square kilometres next to three major oil producing basins across the border in China.
The survey is due for completion in June 2011.
BKM has made an all-stock offer of 25 million shares at A$0.01 per share for the full ownership of SMG.