(Alliance News) - Anglo African Oil & Gas PLC is looking to finalise new investment, it said Friday, after deciding on the two parties which made the best offer.
Earlier July, AAOG signed a term sheet with European High Growth Opportunities Securitisation Fund, which had agreed to subscribe for 106.3 million shares as part of a GBP8.3 million share placing.
This commitment would have made up around a third of the GBP8.3 million.
However, since then AAOG received further offers from other financiers, and it has now decided to agree a "definitive equity share agreement" with Riverfort Global Capital Ltd and Yorkville Advisors.
The rest of the placing came from another unnamed investor, and AAOG on Friday said this party has reconfirmed its commitment to the investment.
The funds will be used to re-enter a well on the Tilapia field in the Republic of the Congo.
Elsewhere, AAOG also said Friday that late in 2018 in identified some producing fields in North Africa for acquisition, which would have constituted a reverse takeover under AIM rules.
The company had considered a subscription by European High Growth for convertible bonds, and a term sheet was signed by European High Growth's manager, but in March AAOG decided not to go ahead with the acquisitions.
However, AAOG Chair David Sefton and Chief Executive James Berwick then proposed setting up a special purpose vehicle to buy the assets, at their own cost, and this vehicle would reimburse the GBP580,000 of costs AAOG had built up exploring the acquisition.
Sefton and Berwick set up Anglo Tunisian Oil & Gas Ltd to buy the assets, which has since received a loan from European High Growth and has made an initial payment for them. European High Growth owns 50% of Anglo Tunisian.
"The company will continue to review whether any transaction between Anglo Tunisian and AAOG should be treated as a related party transaction pursuant to the AIM rules for companies," said AAOG.
AAOG shares were 2.9% lower on Friday morning at a price of 4.32 pence each.