(Alliance News) - Natural resources investment firm MetalNRG PLC said Friday it hired an executive to the board after it entered with an unnamed partner 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 unnamed Romanian oil and gas firm. The Romanian firm currently has a wholly-owned oil & gas concession in the country which is valid until 2034.
The exclusivity period for the talks will run to the end of February.
"I am pleased to have agreed the basis of a robust deal for this investment opportunity and to have entered the exclusivity period," MetalNRG Chief Executive Officer Rolf Gerritsen said. "Due diligence has commenced in earnest, and we look forward to delving into the detail of the oil and gas concession in the coming months."
"This near term cashflow generative project has the potential to add substantial value to the company alongside our Gold Ridge Project and I look forward to updating the market as we make progress with our due diligence process," Gerritsen added. "As announced previously it has always been my intention to seek additional asset to invest in and this is one project that appears to tick all our investment requirements."
Later on Friday, MetalNRG announced Pierpaolo Rocco will join the board as executive director to lead on the Romanian oil & gas project.
Rocco has over two decades of experience leading development activity in the oil & gas industry. This includes stints at oil majors like Total SA, Eni SpA and Royal Dutch Shell PLC and contractors including Saipem SpA.
Shares in MetalNRG were 8.5% lower at 0.80 pence in London on Friday.
By Ahren Lester; ahrenlester@alliancenews.com
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Metalnrg Plc (MNRG)