LONDON (Alliance News) - Andalas Energy and Power PLC on Monday announced the retirement of Chairman David Whitby, and said that it acquired an interest in gas prospect Badger located in southern North Sea.
The company secured the interest in Badge prospect through the purchase of 15% stake in oil & gas company Eagle Gas Ltd.
Andalas said that Eagle holds nearly 67% stake in one of the largest undrilled gas prospects Badger via a subsidiary. Eagle posted a pretax loss of GBP276,435 for five months to the end of February.
The company will pay Eagle GBP125,000 in cash and GBP25,000 in shares. Andalas intends to issue a further 147.1 million shares to Eagle on the earlier of the Badger licence being extended beyond the end of 2018 and Eagle acquiring additional assets agreed by Andalas.
The acquisition will be funded by share placing, the company said. It will raise GBP600,000 through placing of 3.5 million shares at a price of 0.017 pence each. The funds will also go towards general working capital purposes, Andalas said.
The company also appointed Novum Securities Ltd and Optiva Securities Ltd as joint brokers upon completion of the placing.
Following the admission of the placing shares, the company will hold 9.7 billion shares overall.
"This investment is the first step in delivering my broader strategy to combine nearer term catalysts for shareholders, with our existing Indonesian projects, said Chief Executive Simon Gorringe. "Indonesia offers significant potential and we remain committed to our existing projects and strategy there."
Andalas separately said that Whitby will be replaced as Non-Executive Chairman by current Non-Executive Director Robert Arnott, with immediate effect.
"With renewed focus on upstream opportunities and with the addition of the Badger prospect, in the UK North Sea, to our portfolio, I was pleased to become non-executive chairman as we enter a new chapter of the company under the leadership of Simon Gorringe," said Arnott.
Shares in Andalas were down 13% at 0.02 pence per share on Monday.
