Oil India Ltd winds up its wholly-owned subsidiary in US

New Delhi: State-owned Oil India Limited (OIL) said in a regulatory on Wednesday that it has wound up its wholly-owned subsidiary, Oil India (USA) Inc, Texas Corporation on May 2 as per the applicable US laws.

As per the previous year's financial statement, the auditors noted that "the company closed on the sale of all of its oil and natural gas properties on January 14, 2022, with an effective date of October 1, 2021, and on May 5, 2022, approved a plan of liquidation."

Background

As per note 1 of the financial report, "Oil India (USA) Inc (the “Company”) was formed on September 26, 2012 as a Texas corporation. The Company is a wholly-owned subsidiary of Oil India Limited (the “Parent”)." "The Company is a petroleum exploration and production company engaged in the acquisition, exploration, and development of properties for the production of crude oil and natural gas from underground reservoirs," the financial report added.

"On October 4, 2012, the Company entered into a purchase and participation agreement (the “Agreement”) with Carrizo Oil & Gas, Inc and one of its affiliates (collectively, “Carrizo”) to acquire a 20 percent working interest in oil and natural gas properties located in the Niobrara Formation area in Weld, Morgan, and Adams counties of the State of Colorado," it added.

"In December 2021, the Company executed a purchase and sale agreement for the sale of 100 percent of its oil and natural gas properties effective October 1, 2021 agreeing to a sale price of USD 25,000,000. Upon executing the agreement, the Company received an initial deposit totaling USD 5,000,000 with the close pending final due diligence. On January 14, 2022, the purchase and sale transaction closed, and the Company received the remaining sale proceeds totalling USD 20,000,000 adjusted for transaction costs. As a result of the sale, the company recorded a gain of approximately USD19.9 million," said the financial report.

Company adopted a plan of liquidation & termination on May 5, 2022

The financial report in Note 9 stated, "On May 5, 2022, the Company adopted a plan of liquidation and termination. The operations will wind up, all claims and obligations will be settled and any remaining assets will be distributed. Management has evaluated subsequent events through May 17, 2022, which is the date the financial statements were available to be issued and has determined that there were no other subsequent events to be reported."

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