LONDON (Alliance News) - Antrim Energy Inc said after the market close on Friday that it has entered into an agreement for First Oil Expro Ltd to buy its UK subsidiary, Antrim Resources Ltd for USD53 million in cash.
The oil and gas exploration company stated that the deal also includes the assumption by First Oil of certain liabilities and adjusted working capital, from which Antrim will settle ongoing payment and oil swap agreements with Credit Suisse AG and Credit Suisse International.
Antrim said it will retain its licences in the P077 block 21/28 a and P1875 block 21/29d as well as the FEL 1-13 site in the Porcupine Basin, offshore Ireland.
The company said the deal includes the provision for payment of a liquidated damages fee of USD5.3 million under certain circumstances, if the transaction is not completed.
Antrim said that following an extensive review of the deal by the Board, it is unanimously recommending that shareholders agree to the deal.
The deal comes after the company had to secure additional viable financing in order to meet higher than expected capital costs to complete some major developments and meet its ongoing payment and oil swap obligations.
Antrim Energy shares were up 35.3% to 5.58 pence, putting it in the top two AIM movers in early trading Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
