Andalas Energy and Power Plc Acquisition of additional interest in Eagle Gas Limited
July 24 2018 - 11:45AM
UK Regulatory
TIDMADL
25 July 2018
Andalas Energy and Power Plc
('Andalas' or the 'Company')
Acquisition of additional interest in Eagle Gas Limited
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 ("Eagle") to 25% by subscribing for additional shares. The
acquisition increases Andalas' exposure to Southern North Sea Licence P2112
(the "Licence") which contains a large undrilled gas prospect known as Badger
through Eagle's 66.67% interest in the Licence.
Highlights:
* Andalas lifts interest in Eagle to 25%.
* Consideration comprises:
+ Initial consideration of GBP125,000 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 GBP
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 GBP276,435 and net assets were GBP111,265 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 Andalas Energy and Power Plc Tel: +62 21 2965 5800
Gorringe
Roland Beaumont Cornish Limited Tel: +44 20 7628 3396
Cornish/ (Nominated Adviser)
James
Biddle
Colin Novum Securities Limited Tel: +44 207 399 9427
Rowbury (Joint Broker)
Christian Optiva Securities Limited Tel: +44 20 3411 1881
Dennis (Joint Broker)
Stefania Cassiopeia Services Ltd Stefania@cassiopeia-ltd.com
Barbaglio
END
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