LONDON (Alliance News) - Andalas Energy & Power PLC said Tuesday it has increased its holding in Eagles Gas Ltd to 25%.
Following the purchase, oil & gas company increased its exposure to Eagle's 67% interest in the Southern North Sea Licence P2112, which contains a large undrilled gas prospect known as Badger.
The initial consideration is for GBP125,000 in cash and 147.1 million Andalas shares, which the company plans to issue at the mid-market price on the date of issue.
Shares in Andalas Energy & Power closed down 3.9% Tuesday at 0.02 pence each.
The deal also includes deferred consideration of fully paid Andalas shares to the value of GBP100,000 payable either when the extension of the licence goes beyond the end of 2018 or acquisition by Eagle of additional assets agreed by Andalas.
Andalas holding prior to the transaction was 15%, which the company acquired at the end of April.
According to Andalas, Eagle is nearing completion of 3D seismic reprocessing programme, re-interpretation of the structure and definition of the size of the prospective resource.
Andalas Chief Executive Simon Gorringe will also be appointed to the board of Eagle as Andalas' representative.
Chief Executive Officer Simon Gorringe said: "We are pleased to increase our exposure to the Badger prospect at this attractive entry point where the current work programme is nearing its conclusion and will culminate in the publication of a resource estimate. Our team has over 25 years' experience in the UK North Sea, working across 15 fields encompassing every stage of the development cycle, which makes the Eagle opportunity particularly complementary to the team's skill set."
