Energean's Angola acquisition in doubt after partner seeks to pre‑empt

(Sharecast News) - Exploration and production firm Energean said on Wednesday that Chevron had notified the group that Etu Energias has moved to exercise its pre‑emption rights over Energean's planned acquisition of interests in Blocks 14 and 14K offshore Angola.

The deal, announced in March, will see Energean acquire a 31% operated stake in Block 14 and a 15.5% non‑operated interest in Block 14K, with the FTSE 250-listed company noting that its sale and purchase agreement with Chevron remained in place until Etu Energias' pre‑emption claim has been confirmed as valid and completed, and a replacement agreement between Chevron and Etu can be executed.

Energean noted that any assignment to Etu Energias must be made on the same or equivalent terms to its own agreement with Chevron - including a condition requiring the buyer to demonstrate it was a proven deepwater operator with at least one producing asset in water depths greater than 300 metres, both within 15 days of signing and at the unconditional date.

As of 0905 BST, Energean shares were down 1.35% at 770p.

Reporting by Iain Gilbert at Sharecast.com

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