Andalas Energy and Power announced that it has increased its interest in Eagle Gas to 25% by subscribing for additional shares.
The acquisition increases Andalas’ exposure to Southern North Sea Licence P2112, which contains a large undrilled gas prospect known as Badger through Eagle’s 66.67% interest in the Licence.
- Andalas lifts interest in Eagle to 25%.
- Consideration comprises:
Initial consideration of £125,000 in cash and 147,058,824 fully paid Andalas shares to be issued at the mid-market price on the date of issue (on a pre-consolidation basis) payable on completion of certain administrative matters expected to be completed shortly. The initial consideration is being funded out of the proceeds of the recently announced placing; and
Deferred consideration of fully paid Andalas shares to the value of £100,000 payable on the earlier of (i) extension of the Licence beyond 31 December 2018 and (ii) acquisition by Eagle of additional assets agreed by Andalas.The issue price of the shares shall be 90% of the volume weighted average price over the 3 days prior to satisfaction of the condition.
- The parties have also agreed to cancel Andalas’ obligation to issue 147,058,824 deferred consideration shares under the original subscription announced on 30 April 2018.
- Eagle is nearing completion of the 3D seismic reprocessing programme, re-interpretation of the structure and definition of the size of the prospective resource.
- Simon Gorringe to be appointed to the board of Eagle as Andalas’ representative.
Simon Gorringe, CEO of Andalas Energy and Power said: “We are pleased to increase our exposure to the Badger prospect at this attractive entry point where the current work programme is nearing its conclusion and will culminate in the publication of a resource estimate. Our team has over 25 years’ experience in the UK North Sea, working across 15 fields encompassing every stage of the development cycle, which makes the Eagle opportunity particularly complementary to the team’s skill set.”
Source: Company Press Release