(Alliance News) - Anglo African Oil & Gas PLC and Zenith Energy Ltd have finalised the put-and-call option agreement regarding the sale of the remaining 20% stake in Anglo African Oil & Gas Congo SAU, both companies said Tuesday.
On Monday last week, oil & gas developer Anglo African's shareholders had approved the sale of 80% of its Congo subsidiary to oil & gas production company Zenith. At the time, Anglo African and Zenith were also negotiating a put-and-call option for the remaining 20%.
On Tuesday, the companies said the agreement was executed.
Under the call option, Anglo African said it will sell the residual 20% stake to Zenith - upon Zenith's request - if, as at Wednesday last week, the total production at the Tilapia oil field was not exceeding an average of at least 2,000 barrels of oil equivalent per day for any consecutive 30-day period prior to that day.
If the call option will be exercised, the consideration payable by Zenith to Anglo African will be GBP1 million and will be settled by the issue of Zenith shares.
The put option, meanwhile, requires Zenith - at Anglo African's request - to acquire the residual 20% stake, if, as at Wednesday last week, the total production at the Tilapia oil field averaged at least 4,000 barrels of oil equivalent per day for any consecutive 30-day period prior to that day.
If the put option is exercised, the total consideration to be paid by Zenith is GBP2.5 million, which will be also settled in Zenith shares.
Anglo African shares were trading 8.6% higher at 0.43 pence each on Tuesday afternoon in London. Shares in Zenith Energy were up 2.4% at 2.10p each.
By Ife Taiwo; ifetaiwo@alliancenews.com
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