Andalas Energy & Power Share News (ADL)

(Sharecast News) - Upstream oil and gas and energy company Andalas Energy and Power has, through its 100%-owned subsidiary Resolute Oil & Gas UK, entered into an agreement with Corallian Energy to acquire, via a farm-in, an 8% interest in UK Continental Shelf Licence P1918 which contains the Colter prospect, as well as PEDL 330 and PEDL 345.The AIM-traded firm said that in addition, it had raised £0.8m gross at 1.15p via an oversubscribed placing, which, together with existing funds, fully financed the expected costs of the acquisition.It said the farm-in to the Colter prospect was fully funded through to drilling of the well expected in the fourth quarter 2018, with an expected well cost of £7.5m.To earn its 8% interest, Andalas was funding 10.67% of the well cost up to a maximum of £8m, and thereafter was funding 8%.Colter would evaluate a prospect that had been assessed to contain gross unrisked mean prospective resources of 22 million barrels of oil recoverable.The Andalas portfolio now contained short, medium and long term value catalysts, the board explained, each with "significant potential" and activity expected over the remainder of 2018."With this transaction and recent fund raises we have completed the first phase of the transformation of Andalas into a well-funded and well-diversified oil and gas company," said Andalas chief executive officer Simon Gorringe."We now have a portfolio of short, medium and long term value catalysts, in both the UK and Indonesia and we thank shareholders for their support."Gorringe said the company was acquiring an interest in a fully funded well, planned for the fourth quarter, which was targeting a "significant" oil prospect that was attractive due to its resource potential and also its proximity to the Wytch farm oilfield and its facilities."We have worked hard to create a business capable of delivering value to shareholders since the change in the board of the company."We look forward to providing the market with further updates as we make progress across our existing portfolio and the other potential opportunities."Dave Gaudoin, managing director of Corallian Energy, added that his firm was "pleased" to welcome the Andalas team as a partner in the Colter project."They have significant previous experience in developing and commercialising major oil and gas projects in the UK continental shelf and we are looking forward to working with them," Gaudoin said.