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Andalas snaps up stake in private UK oil and gas firm
AIM-quoted oil and gas firm Andalas Energy & Power bought an interest in a large undrilled gas prospect at the southern end of the North Sea via the acquisition of a 14.75% stake in private UK `
Eagle holds a 66.67% interest in Licence P2112 through its wholly owned subsidiary, with Andalas paying a £125,000 cash consideration that will be used to provide capital for the firm's share of a 2018 work programme at the undrilled Badger prospect.
The acquisition was funded via the placing of 3.5bn new ordinary shares of at a price of 0.017p which raised gross proceeds of £600,000.
In exchange for the equity interest, Andalas also offered up 147m shares, equating to £25,000 at the placing price.
Andalas chief executive Simon Gorringe said, "This investment is the first step in delivering my broader strategy to combine nearer-term catalysts for shareholders, with our existing Indonesian projects."
"The investment gives us a material stake in an asset at an attractive entry point, with an existing work programme underway, providing significant upside potential. It also gives us access to other possible UK oil and gas projects that are being worked on by the team at Eagle. We believe our expertise will help Eagle progress Badger and assist in negotiations on other business development opportunities," he added.
As of 0920 BST, shares had dropped 12.82% to 0.017p.