18th Mar 2014 11:22
LONDON (Alliance News) - Leni Gas & Oil PLC Tuesday said it has entered a partnership with Italian group, Pansoinco s.r.l., for its oil and gas assets in Northern Spain, including the producing Ayoluengo Field.
The oil and gas production and exploration company said that the intention of the parties, is for Pansoinco to become a long term strategic partner.
It said the negotiated arrangements, which are subject to contract and completion of final due diligence, include an initial payment of USD2.8 million to Leni Gas 7 Oil at closing for the transfer of 65% of the shares in Leni Investments CPS Ltd, the holding company of Compañía Petrolífera de Sedano, S.L.U., to Pansoinco and for Pansoinco to assume operatorship and all operating and development costs until January 31 2017.
It said that after this, the partners will proceed on the basis of their respective 65% and 35% stake in Compañía Petrolífera de Sedano, S.L.U.
The group said the exclusivity to complete the transaction has been granted until April 30, 2014.
Leni Gas & Oil shares were trading 2.5% lower Tuesday morning, at 0.873 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
LGO.L