(Alliance News) - Natural resources investment firm MetalNRG PLC on Thursday said a Romanian oil concession, for which it is in talks to take a majority stake, could meet its investment criteria.
In November, MetalNRG explained that alongside an unnamed partner, it entered into exclusive talks to buy a majority stake in an established Romanian oil and gas operator.
MetalNRG and the unnamed "London-based oil and gas investment specialist" were looking to buy a 75% stake in the also unnamed Romanian oil and gas firm. The Romanian company currently has a wholly-owned oil & gas concession in the country, which is valid until 2034.
MetalNRG said on Thursday: "The process is ongoing per plan and the initial indications, mainly from our site visit, are encouraging and suggest that the transaction could, based on current operational assumptions, meet our investment criteria.
"As a result of these initial indications, further work has been commenced and we plan to report back to market once the due diligence has been completed."
Shares in MetalNRG were 5.5% lower at 0.54 pence each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Metalnrg Plc (MNRG)