The non-binding exclusivity agreement will set out the terms by which MetalNRG will acquire 75% stake in unnamed Romanian oil and gas firm
Natural resource investing and exploration company MetalNRG has signed an exclusivity agreement with an undisclosed partner to acquire a majority stake in the Romanian oil and gas operator.
The non-binding exclusivity agreement will allow the two firms to set out the terms by which MetalNRG will acquire 75% of the issued share capital of unnamed Romanian oil and gas firm.
The undisclosed Romanian oil and gas firm owns 100% of a oil and gas concession in the country which is valid until 2034.
The acquisition would involve an upfront payment and a free-carry component on the initial development capital. The exclusivity period will run until 28 February 2020.
MetalNRG said in a statement: “The Vendor will sell the operating company’s shares to the purchasers with full title guarantee, free of any charges, mortgages, encumbrances or security interests of every whatsoever nature and the Transaction will be subject to shareholder and UK/Romanian regulatory approvals.”
Additionally, the two firms agreed that the potential transaction would be completed upon concluding a comprehensive due diligence process and signing of mutually satisfactory acquisition documentation.
MetalNRG CEO Rolf Gerritsen said: “I am pleased to have agreed the basis of a robust deal for this investment opportunity and to have entered the exclusivity period. 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. 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”
MetalNRG said that the exclusivity agreement has been signed in collaboration with a London-based oil and gas investment specialist.
Earlier this year, Mkango Resources signed a non-binding agreement with MetalNRG, for Thambani exclusive prospecting license in Malawi.