Dialog Group Bhd shares rose 1.07% to RM1.89 at 11.29am on Wednesday after its joint venture secured concession rights and operatorship for a new onshore oil and gas block in Thailand.
The counter opened at RM1.88 and moved between RM1.87 and RM1.90, with 1.25 million shares changing hands.
Dialog’s 50.01%-owned joint venture company Pan Orient Energy (Siam) Ltd (POES) was awarded the L8/66 concession following a joint bid with CanAsia Energy Corp under Thailand’s 25th Onshore Bid Round.
The block carries a minimum work commitment of US$14.3 million, with POES serving as operator and holding a 70% participating interest while CanAsia holds the remaining 30%.
The concession is located next to Dialog’s existing L53/48 producing onshore block in Thailand, also operated through POES, which could provide operational synergies due to the proximity and similar geological characteristics.
Dialog said the award is subject to the finalisation and execution of the concession agreement and fulfilment of the stipulated conditions, with physical work expected to begin once the agreement is signed.
The group said the concession is not expected to have a material impact on its earnings, net assets or gearing for the current financial year but is expected to contribute positively to future earnings.
