21st Jul 2015 11:12
LONDON (Alliance News) - Xplorer PLC Tuesday said it has signed a memorandum of understanding to acquire a stake in five shallow offshore exploration permits offshore Morocco.
The oil and gas investment company said it will acquire Teredo Morocco Ltd from Teredo International Ltd. Teredo Morocco owns a 36.75% stake in the Boujdour permit, which consists of five shallow offshore exploration permits.
Xplorer will fully acquire Teredo Morocco, and in return will issue Teredo International with 56% of the post-proposed enlarged issue share capital of the company.
The acquisition is conditional on Xplorer raising additional equity finance.
"It is anticipated under the MOU that a further fundraising will be undertaken concurrent with the Proposed Acquisition, further details of which will be provided at the appropriate time," said the company.
Xplorer said it has appointed Smaller Co Capital Ltd as a joint broker to the company. The company and the broker intend to raise around GBP300,000 through the issue of convertible loan notes to "assist in the progression of the acquisition", it said.
The Boudjour permit is prospective for oil and gas, with mean net un-risked prospective resources of 463.4 million barrels of oil equivalent, of which 31.1 million barrels are categorised as P90, or proven reserves, whilst 182.7 million are categorised as P50, or probable reserves.
Xplorer shares were untraded on Tuesday, last trading at 12.50 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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