KUALA LUMPUR (April 6): Reach Energy Bhd said it has no plans to launch a cash call on investors to fund the capital expenditure (capex) incurred by its qualifying asset (QA) in the near term.

The special purpose acquisition company (SPAC) is acquiring a controlling 60% stake in Kazakhstan's Emir-Oil fields for US$154.9 million (RM638.2 million). Emir-Oil will be Reach Energy's first hydrocarbon asset.

Reach Energy managing director Shahul Hamid Mohd Ismail said the capex for its QA from now until 2019 amounts to some US$15 million, which will be funded internally.

"We have sufficient funds for that," he told a media and fund managers briefing here today.

The capex is for upgrading the facility and infrastructure at the oil fields.

"From 2019 onwards, the capex we need is about US$30 million," said Shahul Hamid, adding that it will also be funded internally and from within the joint venture with its partner.

If things go as planned with the approval from the Securities Commission (SC), the authorities and shareholders, he said the QA should be completed by September. Reach Energy is in the midst of submitting the QA proposal to the SC.

According to Shahul Hamid, the trust value per share is about 76 to 77 sen or RM755 million.

At 2.45pm, Reach Energy shares were traded up 0.5 sen or 0.74% to 68.5 sen, with 164,200 shares done. Its market capitalisation was at RM875.31 million.