Xinchao Shiye, a public company based in east China's Shandong province, plans to buy oil fields in the US in a deal worth around $1.3 billion.

The oil fields are in Howard and Borden counties in Texas, said a Xinchao Shiye disclosure to the Shanghai Stock Exchange on Saturday, reports Xinhua news agency.

Xinchao Shiye inked a Letter of Intent with Ningbo Dingliang Huitong Equity Investment Center, a limited liability partnership, and all its individual partners.

According to the disclosure, the Centre will purchase the oil fields from Tall City Exploration and Plymouth Petroleum, two limited liability companies registered in Nevada.

Earlier this year, Xinchao Shiye announced it would buy oil fields in Crosby County of Texas.