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(Alliance News) - Deltic Energy PLC on Tuesday said it received the support of its largest shareholder after rebuffing a takeover attempt by oil and gas explorer Reabold Resources PLC.
Deltic Energy shares closed 2.6% lower at 0.83 pence each in London on Tuesday. Reabold's stock closed down 1.8% at 0.55p.
IPGL Holdings Ltd, controlled by Michael Spencer and holding a 17% stake, sent Deltic a letter stating "its intention not to support the proposed offer".
Reabold on Wednesday said it was in the process of evaluating a possible all-share offer for the entire issued and to be issued share capital of Deltic Energy. The offer, Reabold said, will see 1.5 Reabold shares be exchanged for each Deltic share.
Deltic on Thursday said it unequivocally rejected the unsolicited and non-binding offer from Reabold. Deltic explained the offer "places no value at all on its significant non cash assets, not least its share of two potential high impact exploration wells".
"This intention reflects our continuing support of Deltic's management team, its technical capability, focused asset base with high impact potential and current strategy," the letter from IPGL said.
Also on Tuesday, Reabold reported on flow test operations at the Iecea Mica-1, Romania, being carried out by Danube Petroleum Ltd. Reabold holds a 51% interest in Danube.
Reabold said the reinstatement of Covid-19 quarantine measures caused a short delay to well flow operations at the site.
"The Hungarian wireline contractor required to undertake ongoing pressure measurement and sampling of reservoir fluids on the well has been delayed from returning to site due to these requirements," Reabold explained.
"The wireline contractor is expected to be back on site on 27 July 2020 to resume pressure monitoring operations on the well. The results of down hole pressure monitoring will be required to determine future flow testing operations and programmes."
By Eric Cunha; ericcunha@alliancenews.com
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