LONDON (Alliance News) - Doriemus PLC Friday said it has signed a binding term sheet with Angus Energy Weald Basin No. 3 Limited to acquire a 10% stake in its Lidsey oilfield in West Sussex.
Doriemus said it also has been granted a first-right-of-refusal period to negotiate increasing its interest in the site to 25% as part of the deal.
The oil and gas investment company said it will pay Angus Energy GBP10,000 in cash and will issue to Angus Energy 100 million shares in Doriemus, worth GBP100,000 at Thursday's closing price on AIM. Angus will be paid an additional GBP230,000 cash on signing the formal farm-in agreement, which should be completed on November 18.
Doriemus said it has the option to maintain a 10% participating interest on the entire oilfield by paying cash calls on a 2-for-1 basis on the next well at Lidsey and thereafter by paying cash calls on a 1-for-1 basis on any further wells.
The Lidsey site currently produces 25 barrels of oil per day, with operating costs of USD45 per barrel. A work over of the well is planned before the end of October to increase production.
Doriemus shares were up 35% to 0.135 pence Friday afternoon.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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