(Alliance News) - Advance Energy PLC shares were temporarily suspended on Friday as it announced the potential acquisition of a European oil and gas company.
Shares in the Isle of Man-based oil and gas company were suspended at 0.18 pence each in London on Friday, having jumped from 0.09p at Thursday's close.
Advance said that it has been actively assessing a number of live, value-accretive business development opportunities.
On Friday, it confirmed it has entered into a non-binding heads of terms agreement with "the majority owner of a European oil and gas company". Under the agreement, Advance intends to buy the company for a combination of new Advance share and an earn-out based on oil production.
Advance said that the head of terms includes an exclusivity period up to October 29.
The acquisition would also be considered a reverse transaction under AIM rules and is therefore subject to the issue of a new AIM admission document, the company noted.
Advance said that its shares will remain suspended until it is in a position to publish the associated AIM admission document for the potential acquisition. If the acquisition does not proceed, the company expects the trading suspension to be lifted.
"It should be noted there is no certainty that the potential acquisition, or any transaction, will take place," Advance added.
By Sophie Rose; sophierose@alliancenews.com
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