12th Feb 2014 11:49
LONDON (Alliance News) - Xplorer PLC Wednesday said its partner and shareholder, Sprint Capital has now identified, agreed exclusivity and is in advanced diligence enquiries with two acquisition targets.
The oil and gas investment company said the first target offers existing mid-scale production with growth potential and the second target offers significant exploration upside.
The company said that both targets are in a similar geographical region.
Xplorer said that once Sprint's due diligence is complete, it will receive legal, financial and technical diligence reports from various advisers to review and consider the possible acquisitions.
The company said that in anticipation of this next stage, it has appointed a leading advisory firm to help with the process of raising debt finance to support the potential transactions and is currently in talks with three investment banks towards possibly raising equity capital in conjunction with the potential transactions.
Xplorer said it will make a further announcement between now and the end of March.
The news comes after the company announced in December that it had refined down its shortlist of investment candidates to two companies which could be acquired by Xplorer under Sprint's guidance and financial support.
Xplorer shares were down 0.5% to 51.25 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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