4th Aug 2016 07:51
LONDON (Alliance News) - Hague & London Oil PLC Thursday said it has partnered with ENGIE Global Energy Management to acquire natural gas production reserves within Europe, a deal that the company's chairman described as a "major step" for the revised strategy.
Hague shares were trading up 26% to 4.88 pence per share on Thursday morning.
The company has signed a memorandum of understanding with ENGIE and under the terms of the deal, Hague will contribute its upstream and commercial capabilities to target, acquire and manage specific low risk natural gas production assets in Europe.
ENGIE will contribute its substantial footprint in European gas markets and its expertise in energy management to offer an innovatively structured gas off-take, designed to help Hague secure the funding of such assets whilst minimising the dilution to its shareholders.
"This relationship is a major step in Halo's implementation of its recently revised strategy and shows our commitment to repositioning the company by changing the risk profile of the business," said Chairman Andrew Cochrane.
Both parties have initiated their activities and have already made solid progress. While such an arrangement is not exclusive, the parties have agreed that Hague will provide ENGIE with a first look at all projects it pursues which fit the description of assets sought within the deal.
By Joshua Warner; [email protected]; @JoshAlliance
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