21st Dec 2015 12:53
LONDON (Alliance News) - Namibian Resources PLC on Monday said it has entered into a binding deal to acquire a company which holds a majority stake in a producing asset offshore the Republic of Congo with additional exploration potential.
Namibian Resources shares have been suspended following the announcement, and the company plans to change its name to Anglo African Oil & Gas PLC once the deal is completed to better reflect the company's activities moving forward.
Namibian Resources has struck the deal with Sister Holdings SAS to acquire shares in Petro Kouilou SA, which holds a 56% stake via a production sharing agreement in the Tilapia field.
Namibian Resources said it will pay USD2.5 million in cash, issue shares in the company valued at another USD2.5 million, and commit to fund an agreed development plan for the asset involving capital expenditure amounting to at least USD5.5 million.
The company said the shares that will be issued as part of the deal will represent at least 20% of the company's enlarged issued share capital following a placing being conducted in connection with the acquisition, it said.
Petro Kouilou SA reported revenue of USD1.8 million and a loss of USD278,000, or USD205,000 after depreciation, in calendar 2014, at the end of which its net asset book value stood at USD2.8 million.
The deal is conditional on shareholder approval and the financing for the development programme of the asset, which aims to push production up to between 200 and 500 barrels per day from its current level of 50 barrels per day.
Separate from the acquisition, Namibian Resources said it has appointed Alex MacDonald as a new director to tap into his expertise of merger and acquisitions, engineering and exploration experience within the oil and gas scene.
If the acquisition goes through, the board of Namibian Resources will be shaken up with only existing Non-Executive Chairman Brian Moritz set to stay on alongside newly appointed MacDonald.
Current Executive Directors Michael Soloman and David Johnson will leave the board and be replaced by David Sefton, James Cane and Oleg Schkoda.
Sefton is the managing partner of Linton Capital LLP, a private equity manager and corporate finance advisory business, and has held senior roles at LukOil. Cane has over 30 years working in financial and management consultancy with experience in strategy, marketing and business development, and Schkoda has 12 years experience working for oil and gas companies Schlumberger, Baker Hughes and GE Energy.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.