Singapore Corporate News - 10 Dec 2007

Ipco buys 55% of Grand Prosper Group

IPCO International, a developer and investor in oil and gas, water and environment infrastructure projects, is buying into a company which has rights to explore and produce oil and natural gas in China.

Mainboard-listed Ipco said over the weekend that its wholly owned subsidiary, Excellent Empire Ltd, has agreed to buy 55 per cent of Hong-Kong based investment holding company Grand Prosper Group from its majority owner Dragon Seed Resources for US$9.5 million.

Grand Prosper owns 90 per cent of a Chinese-foreign joint venture, Deshi Oil and Gas Exploration Co, which has a contract with Shengli - a subsidiary of China Petroleum & Chemical Corporation (Sinopec) - for the exploration, exploitation and production of oil and natural gas in the Ciyaobao and Dongdaoliangzi areas of the Ningxia Autonomous Region in China. Collectively, the two areas add up to about 254 sq km within the Ordos gas field.

Under the contract, Deshi will contribute all costs and expenses for the extraction and production of natural gas from the two areas, and will receive 49 per cent of the revenue from the sale of the natural gas produced, after recovery of costs and expenses.
The contract expires in 19 years and may be extended.

A-Sonic expects to register losses for full financial year

A-SONIC Aerospace Ltd, engaged in aerospace engineering and logistic solutions, has warned investors of losses.

The company said over the weekend that it and its subsidiaries are expected to register losses for the full financial year ending Dec 31.

'The results of the company and its subsidiaries for the full financial year ending Dec 31, 2007 is expected to register losses due to the anticipated losses attributable to its logistics business which was acquired in December 2006, and a significant partial write-down of goodwill on consolidation resulting from the acquisition of the logistics business,' the company said in a statement to the Singapore Exchange.