CHK OIL (00632) announced that on November 10, 2025, CHK OIL (International) Group Limited (CHK OIL International, an indirect wholly-owned subsidiary of the Company) entered into a memorandum of understanding (MoU) with Aral Petroleum Capital LLP (the Operator) regarding a potential collaborative project. Under the MoU, CHK OIL International and the Operator agreed to explore opportunities for cooperation in the exploration and production of oil wells in an oilfield located in the Republic of Kazakhstan (the Target Oilfield). The collaborative project includes, but is not limited to, providing solutions and introducing innovative technologies for the exploration, production, management, and operation of the Target Oilfield.
The purpose of the MoU is to document the preliminary mutual understanding between the parties as a platform for further negotiations. As of the date of this announcement, no definitive terms regarding the actual scope of the collaborative project have been finalized between the Group and the Operator, and no binding agreement has been executed.
Amid the current geopolitical climate, the uncertain Sino-U.S. relationship has introduced additional political risks. The Group continues to maintain basic operations at its oil and gas fields in Utah, while its oil trading business in China faces challenges due to slower economic growth and weakened demand. To address the uncertainties in Sino-U.S. relations and China's sluggish economic recovery, the Group intends to explore potential investment projects to create long-term value for all stakeholders.
Leveraging its extensive expertise, the Group has been exploring opportunities to apply China's advanced oil and gas extraction technologies to oilfields in other countries to enhance productivity and operational efficiency. The Group aims to expand its business beyond China and the U.S. Kazakhstan, as the largest economy in Central Asia and a key hub in the Belt and Road Initiative, presents a strategic market for the Group.
With its knowledge and expertise in exploration and production, the Group seeks to enter the Kazakh market by offering tailored oil and gas consulting services. These services include, but are not limited to, providing innovative solutions utilizing advanced extraction technologies to oilfield owners or operators to optimize upstream operations.
If materialized, the collaborative project would enable the Group to diversify its revenue streams and achieve sustainable business growth, aligning with the overall interests of the Company and its shareholders.