Nelson Resources completes acquisition of a 50% participatory interest in the North Buzachi oil field in western Kazakhstan

Nelson Resources Limited (TSX: NLG) announced today that it has completed the final phase of the acquisition of a 50% interest in the hydrocarbon license to North Buzachi oil field. As previously announced, a 35% interest in the license to the field was purchased for US$58 million from CNPC International, an affiliate of the China National Oil Company. Having now received the necessary government approvals and paid to CNPC International US$ 32 million, the transfer of the remaining 15% interest in the license has been completed. As previously disclosed, financing of US$90 million has been provided under an interim financing facility arranged through Credit Suisse First Boston, London Branch. Subject to further negotiation, it is expected that the interim facility will be replaced by a term loan facility. Also as previously announced, a definitive Joint Operating Agreement was executed by the parties allowing for the operation of the field through a joint operating company, in which both parties will share, on a 50/50 basis, decision making authority and funding responsibility.