The company, which is into exploration, development and production of oil and gas resources, announced last night (Oct 16) that its Overall Development Plan for the phased development of the Yongping Oilfield in the Fuyu 1 Block has received approval from China's National Development and Reform Commission.
This paves the way for the development and production of Fuyu 1 Block which is located in Songliao Basin, Jilin Province, and is operated by Kingworld Resources Limited, a wholly owned subsidiary of RH Petrogas.
Kingworld Resources entered into the petroleum contract for Fuyu 1 Block with China National Petroleum Corporation in November 2007.
Kingworld Resources had a 100% working interest in the Fuyu 1 Block during the evaluation phase.
With the commencement of commercial production, China National Petroleum Corporation would back in for a 51% working interest.
OSK-DMG had a buy call and target price of $1.19 for the stock which bounced up 4.5 cents to 55 cents this morning with 10.8 million shares traded.
See: RH PETROGAS's "Attractively valued", TIONG WOON's at steep discount
UOB Kay Hian today lowered its target price from S$1.35 to S$1.00 after adjusting its average 2015 Brent oil forecast down to US$85/bbl from US$105/bbl under a more prudent approach to reflect the recent risks in oil prices.
RH Petrogas' corporate presentation materials are here.