(Yicai Global) Aug. 7 -- Chinese oil and gas exploration and development firm Geo-Jade Petroleum Corp. [SHA:600759] will end its material assets reorganization project, a move that could put its acquisition of oil and gas resources overseas on hold.

The firm plans to issue shares worth CNY3.36 billion (USD494 million) to acquire a 96.7 percent stake in Shanghai Longzhou Xinke Energy Investment Co. and to raise complementary funds, Geo-Jade said on Aug. 4.

Eight months after Geo-Jade first applied to the domestic authority, the China Securities Regulatory Commission, inactivity related to the restructuring review has significantly impacted the company.

Geo-Jade will apply for a termination of the restructuring review and withdraw its application after talks with its counter party.

The firm will hold an investors' briefing regarding the end of its reorganization plan on Aug. 10 and company activities related to the reorganization will cease within one month.

Geo-Jade had aimed to acquire Longzhou Xinke as the company owns interests in a number of oil and gas assets, including a 100 percent stake in Bankers Petroleum Ltd., a 51 percent stake in Yargeo and a 100 percent stake in Ji'ao Investment.

Bankers Petroleum has oil fields mainly located in Albania, including the Patos-Marinza oilfield, the largest oilfield in continental Europe excluding Russia.

Yargeo has 24 operational wells in Russia's Yarudeyskoye oil field which produce 9,700 tons of oil per day with an average daily output of 404 tons per well.

Ji'ao Investment's main assets consist of five block assets held indirectly via its Kazakhstan-based holding company NCP. Underground resources of these five blocks are currently at the exploration stage, and approvals from Kazakhstan's energy ministry have already been obtained.

These five blocks have combined oil reserves of 1,741 million tons and recoverable reserves of 609 million tons.

Geo-Jade reported a decline in both revenue and net profit last year. Revenue fell 3.34 percent annually to CNY1.20 billion (USD178 million) while net profit slumped 33.48 percent to CNY43.10 million (USD6.33 million). In terms of net profit excluding non-recurring items, Geo-Jade has been loss-making for four consecutive years.

Geo-Jade invests in petrochemical projects and engages in technological research and advisory services for related engineering projects, in addition to the exploration and development of oil.