5th Jun 2015 08:05
LONDON (Alliance News) - CEB Resources PLC on Friday said it has raised GBP1.5 million in a share placing and has struck a deal with Corsair Petroleum (Singapore) Pte Ltd focused on buying oil and gas concessions in Indonesia. It also has appointed a new chief executive as part of the deal.
CEB has placed 375 millions shares at 0.4 pence per share to raise the GBP1.5 million, to provide working capital and to back the potential acquisition of the Indonesian licences under the Corsair deal. CEB shares are currently suspended.
As part of the deal with Corsair, David Whitby, a partner at Corsair, has been appointed as CEB's new chief executive.
The deal between the companies will see Corsair assign CEB an interest in a contract it holds with PT Wangsa Energi Prakarsa which covers the application for two oil and gas concessions in Indonesia. Under the deal, CEB will fund 100% of the due diligence, acquisition and development costs in return for a 90% share of all distributions to participating interests in the projects until all investments have been paid back.
After that, CEB will be entitled to a 70% participating interest in the Indonesian assets.
As part of the placing CEB has agreed to issue 31.3 million shares to Corsair and grant it options on 34.3 million shares, exercisable at 0.4 pence for three years after the agreement.
In a separate agreement, also announced Friday, CEB has struck a deal with fellow AIM-listed company Northcote Energy Ltd under which Northcote will be entitled to participate in up to 12.5% of CEB's participation in the Indonesian assets. Northcote has subscribed for 50 million of the shares issued by CEB, representing a GBP200,000 investment.
Shares in Northcote were down 1.8% to 0.236 pence on Friday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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