(Alliance News) - Andalas Energy & Power PLC on Tuesday said Leslie Peterkin and Mark Rollins will replace outgoing Chief Executive Simon Gorringe and Chair Robert Arnott, respectively, with immediate effect.
In addition, the oil and gas exploration and production company said it has raised GBP525,000 through a subscription of 350.0 million shares at a price of 0.15 pence each. The issue price represents a 20% premium to the last closing mid-market price of Andalas shares on AIM of 0.125p.
Andalas shares were trading 34% higher in London on Tuesday at 0.17p each, giving it a market capitalisation of GBP2.0 million.
The net proceeds of the subscription will be used to review new opportunities and for general working capital, the company noted.
Andalas said Noiva International SA, a company owned by Peterkin and Rollins, has subscribed for 133.3 million shares at the issue price, representing 8.5% of Andalas's enlarged share capital.
"Leslie and I are delighted to join the board of Andalas and concurrently we, along with John Battrick, have invested GBP500,000 as part of the subscription, to demonstrate our commitment to the company," said Rollins.
Turning back to board changes, Andalas said Anthony Battrick was appointed as technical manager and subscribed for 66.6 million shares. Battrick is a geoscientist and has worked in the exploration and production sector for five decades for a number of international oil companies, Andalas said.
Meanwhile, Rollins was until recently chair & CEO of Ukrnafta, a Ukranian oil production firm. Between 2008 and 2015, he was a senior executive at BG Group PLC.
Peterkin has previously served as Woodside's director Browse Liquefied Natural Gas Development and MOL's senior vice president of Operations & Development.
In conjunction with these board changes, Andalas said it has awarded a total of 137.5 million options over shares to its executive directors and senior management. Such options will represent 8.8% of the company's issued share capital following the subscription, it said.
The options are all exercisable at 0.30p per share, Andalas said, representing a premium of 100% over the subscription price.
Rollins and Peterkin were granted 25.0 million options each, while Battrick has secured 12.5 million options. Legal & Commercial Director Ross Warner was granted 6.3 million options.
Looking ahead, Rolling added: "As a first order of business we will be conducting a review of the company's strategy to ensure we can realise this growth potential as soon as possible by introducing new opportunities to the board and widening the existing asset base."
Finally, Andalas proposed name change to Advance Energy PLC, subject to shareholder approval.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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