OREANDA-NEWS. The shareholders of Chaparral Resources Inc. voted in favor of the merger with LUKOIL Overseas at the special meeting held in London. The merger offer was approved by a majority of votes cast. The merger became effective on the same day.

With the close of the transaction Chaparral Resources ceases to be a publicly traded company and became an indirect wholly owned subsidiary of LUKOIL Overseas.

Since December 2005, the LUKOIL Overseas Group has been the owner of 60% of Chaparral Resources stock acquired among the other assets of Nelson Resources Limited.  The remaining shares in Chaparral Resources stock are owned by a large number of minority shareholders and are traded publicly in the USA.  The approved merger agreement was signed by Chaparral Resources, LUKOIL Overseas and NRL Acquisition Corp. on March 13, 2006. The price has been set at $5.80 per share.

Chaparral Resources, Inc. was established in 1972 in the United States. Chaparral Resources and LUKOIL Overseas are co-owners of KarakudukMunai (KKM), the operator for the development of the Karakuduk oil field.  LUKOIL Overseas indirectly owns 76% of KKM.