Andalas Energy and Power Plc, the AIM listed upstream oil and gas and energy company (AIM: ADL), is pleased to announce it has increased its interest in Eagle Gas Limited to 25% by subscribing for additional shares. The acquisition increases Andalas’ exposure to Southern North Sea Licence P2112 which contains a large undrilled gas prospect known as Badger through Eagle’s 66.67% interest in the Licence.
- Andalas lifts interest in Eagle to 25%.
- Consideration comprises:
- Initial consideration of £125,000 in cash and 147,058,824 fully paid Andalas shares to be issued at the mid-market price on the date of issue (on a pre-consolidation basis) payable on completion of certain administrative matters expected to be completed shortly. The initial consideration is being funded out of the proceeds of the recently announced placing; and
- Deferred consideration of fully paid Andalas shares to the value of £100,000 payable on the earlier of (i) extension of the Licence beyond 31 December 2018 and (ii) acquisition by Eagle of additional assets agreed by Andalas.The issue price of the shares shall be 90% of the volume weighted average price over the 3 days prior to satisfaction of the condition.
- The parties have also agreed to cancel Andalas’ obligation to issue 147,058,824 deferred consideration shares under the original subscription announced on 30 April 2018.
- Eagle is nearing completion of the 3D seismic reprocessing programme, re-interpretation of the structure and definition of the size of the prospective resource.
- Simon Gorringe to be appointed to the board of Eagle as Andalas’ representative.
Simon Gorringe, CEO of Andalas Energy and Power PLC said: “We are pleased to increase our exposure to the Badger prospect at this attractive entry point where the current work programme is nearing its conclusion and will culminate in the publication of a resource estimate. Our team has over 25 years’ experience in the UK North Sea, working across 15 fields encompassing every stage of the development cycle, which makes the Eagle opportunity particularly complementary to the team’s skill set.”
About Eagle and the Badger prospect
Seaward production Licence P2112 contains the Badger prospect, an undrilled gas prospect in the UK Southern North Sea. Eagle, through its wholly owned subsidiary, has a 66.67% interest in Licence P2112. The unaudited management accounts of Eagle for the period from 1 September 2017 to 28 February 2018 showed a pre-tax loss of £276,435 and net assets were £111,265 at 28 February 2018.
The 2018 work programme includes the reprocessing of 3D seismic data and the re-interpretation of the structure to define the size of the prospective resource. The programme fully meets the Licence commitment and Petroleum Geo-Services ASA (“PGS”) has been contracted to undertake the reprocessing. Eagle and Andalas will cooperate on funding the long-term development of the project.
A further announcement will be made following the issue of the initial consideration shares to Eagle.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR). Upon the publication of this announcement via a Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.
For further information, please contact:
|Simon Gorringe||Andalas Energy and Power Plc||Tel: +62 21 2965 5800|
|Roland Cornish/ James Biddle||Beaumont Cornish Limited
|Tel: +44 20 7628 3396|
|Colin Rowbury||Novum Securities Limited
|Tel: +44 207 399 9427|
|Christian Dennis||Optiva Securities Limited
|Tel: +44 20 3411 1881|
|Stefania Barbaglio||Cassiopeia Services Ltd||Stefania@cassiopeia-ltd.com|