(Alliance News) - Solo Oil PLC on Tuesday said it remains in talks with ONE Dyas BV to amend the terms of natural gas fields package acquisition.
The deal was agreed in October, with Solo Oil subsidiary Scirocco Netherlands Energy BV agreeing to purchase a package of 14 gas fields. The natural resources investment company said the acquisition consideration comprises an upfront payment of EUR30.1 million, plus a future deferred payment of EUR2.0 million upon first production from future development of the hydrocarbons.
In December, the AIM-listed company was seeking to renegotiate some terms of the agreement with ONE Dyas to reflect operational and other changes since signing the original deal.
"In light of certain changes of circumstance since signing the agreement with ONE Dyas, we felt it prudent to reengage with them with a view to agreeing new terms that better reflect the current and near-term outlook for the assets," Chief Executive Tom Reynolds said in December.
He added: "We hope to agree on terms that are beneficial to all parties and allow us to complete this transaction."
On Tuesday, Solo Oil said, as part of the proposed transaction, it continues to assess all debt and equity funding options available to the company.
Additionally, Solo Oil said it continues to progress a number of complementary business development opportunities in line with its European gas strategy.
Looking ahead, the company reiterated that there can be no guarantees that the acquisition will proceed.
Solo Oil shares remain suspended, last trading at 2.42 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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