Shandong Xinchao Plans $420 Million U.S. Energy Asset Purchase

Shandong Xinchao Energy Corp. plans to buy oil and gas assets from a U.S. company for as much as $420 million, according to an exchange filing from the Chinese firm.

Shanghai-listed Xinchao intends to purchase the assets in Texas from Grenadier Energy Partners II, LLC through its U.S. unit, according to the filing.

The targeted assets produce 9,000 barrel of oil and gas equivalent per day at present, with proved reserves of 65 million barrels. The acquisition will help Shandong Xinchao boost profit and expand its presence in the energy exploration sector, the company said.

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