9th Sep 2013 11:24
LONDON (Alliance News) - IGas Energy PLC Monday said it has entered an agreement deal with Caithness Petroleum Ltd to acquire Caithness Oil Ltd, its UK subsidiary, for GBP8.95 million in IGas shares and separately TrapOil PLC said it would sell assets to Caithness Oil Ltd as long as the deal goes through.
The onshore hydrocarbon exploration and development company with operations in the UK, said the deal will give IGas 100% of the company's interests in the Moray Firth, including the Lybster Field which will be sold to Caithness Oil Ltd By TrapOil.
The company said the deal would be completed through the allotment of shares in IGas and is conditional of the receipt of requisite third party and environmental consents.
"I am pleased we have managed to secure this opportunity to increase our existing production and one that offers significant upside potential. The transaction is in line with our strategy to grow our production base in order to fund our exploration activities and to take advantage of accretive acquisition opportunities," Chief Executive Andrew Austin said in a statement.
IGas said it would issue 7.8 million shares in the company to pay the GBP8.95 million consideration.
In its statement, TrapOil said it would sell the Knockinnon and Lybster prospects along with some other assets to Caithness Oil Ltd as long as IGas completes the acquisition. It will get USD7.l5 million of IGas shares as payment.
IGas shares were down 1.66 pence, or 1.50% to 109.09 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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