In reference to Reach Energy Berhad (“Reach Energy” or the “Company”)'s announcement made on 5 March 2016 to Bursa Malaysia Securities Berhad in respect of the Proposed Acquisition, the Company wishes to clarify that the consideration of USD154.9 million (subject to adjustments and provided that the adjusted consideration shall not be greater than USD175,889,000) comprise of : 

(i) the purchase price of USD1.00 in respect of the acquisition of 60% equity interest in Palaeontol B.V.; and

(ii) the remaining amount of the consideration in respect of the assignment and transfer of 60% amount owing by Palaeontol B.V to MIE Holdings Corporation ("MIEH"). As at 30 September 2015, the amount owing by Palaeontol B.V. to MIEH is USD288.5 million.

For item (ii) above, at the Completion Date, Reach Energy will pay the remaining amount of the consideration to MIEH for the re-assignment and transfer of 60% of the outstanding Shareholder Loans in Palaeontol B.V. (together with its accrued interest), from MIEH to Reach Energy. Upon the re-assignment, Palaeontol B.V. will owe 60% of its outstanding Shareholder Loans to Reach Energy and the remaining 40% to MIEH.

This announcement is dated 18 March 2016.