24th Jun 2016 06:39
LONDON (Alliance News) - Hague and London Oil PLC said Friday that it has acquired Premier Oil (SADR) Ltd, which holds interests in five exploration licence areas in Sahrawi Arab Democratic Republic.
It paid a nominal consideration of USD1 to Premier Oil, and the seller has also been granted a gross royalty of 5% over future production revenue from the interests in the blocks held by Maghreb, and 5% of the proceeds of any eventual sale of these interests, subject to an agreed cap calculation as 90% of Hague and London Oil's market capitalisation.
"This area of the Atlantic Margin has seen growing industry interest recently, which, in the current environment, demonstrates the attraction of the basin, with some large-scale discoveries in Senegal and Mauritania. The acquisition of five blocks in Western Sahara from Premier Oil expands our SADR position to eight blocks in total. Should the political uncertainties be resolved, this acquisition will add to Hague and London Oil's exposure to a high-potential basin. As we continue to build our portfolio at minimal cost in accordance with the new dual strategy, we are pleased to report this further step in progress towards value creation," said Chairman and Interim Chief Executive Officer Andrew Cochran in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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