MIE Holdings (01555.HK) said that it has acquired a 25% working interest in 7,450 net acres of oil and gas leases in the Niobrara formation within the DJ basin located at Weld County, Colorado, the US.

The acquisition was carried out through a strategic partnership with Pacific Energy Development Corp. (PEDCO), a privately held oil and gas company based in California, the US. Under the partnership, PEDCO acquired a 50% working interest in the Niobrara Asset and assigned 31.25% at nil consideration to a joint venture formed with MIE, Condor Energy Technology LLC, which MIE and PEDCO own 80% and 20% respectively.

In connection therewith, MIE subscribed 4 million shares of restricted series A convertible preferred stock in PEDCO on 31 October 2011 for an aggregate consideration of US$3 million, representing 17.8% of the issued share capital of PEDCO.