KUALA LUMPUR: Special purpose acquisition company (SPAC), Cliq Energy Bhd has entered into a conditional sale and purchase agreement (SPA) with Kazakhstan-based Phystech Firm LLP to acquire the latter’s oil assets.

"We came across this asset in Kazakhstan. After more detailed assessment, other factors add to make it attractive," said Cliq Energy's managing director and chief executive officer Ahmad Ziyad Elias.

The purchase, which will see the SPAC having a controlling 51% interest in a special purpose vehicle where the oil assets will be parked, will be satisfied via a cash payment of US$90 million and a differed cash payment of US$27.3 million at the end of the third year from the completion date of the SPA.

Details of the SPA shows Cliq Energy (fundamental: 0.6; valuation: 0) entering two agreements — a business transfer agreement and a subsurface use contract for the production of hydrocarbons at two oil field blocks in Kazakhstan.

"After having comprehensively assessed and evaluated what hydrocarbon potential and value lie within the asset, the Republic of Kazakhstan as a country, we feel, do offer us opportunities for growth as prospects are increasingly evident," said Ziyad.

The proposed acquisition represents a qualifying acquisition for the company to graduate from being a SPAC into becoming a junior independent exploration and production company.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)