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 £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
(Nominated Adviser) |
Tel: +44 20 7628 3396 |
Colin Rowbury
|
Novum Securities Limited
(Joint Broker) |
Tel: +44 207 399 9427 |
Christian Dennis |
Optiva Securities Limited
(Joint Broker) |
Tel: +44 20 3411 1881 |
Stefania Barbaglio |
Cassiopeia Services Ltd |
Stefania@cassiopeia-ltd.com |