Oil & Gas Update

RNS Number : 2654X
MetalNRG PLC
27 August 2020
 

 

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR ANY OTHER JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

 

 

 

27th August 2020

 

MetalNRG plc

(The "Company" or "MetalNRG")

 

OIL & GAS UPDATE

 

 

MetalNRG plc (LON:MNRG) the natural resource investing and exploration company is pleased to provide an update on progress made on the proposed UK Oil & Gas transaction announced in June this year.

UK Oil & Gas Transaction:

 

MetalNRG set up a special purpose vehicle with a number of private investors who will make up the management team for the Oil & Gas asset once the transaction is completed. The special purpose vehicle is owned 50% by the private investors and 50% by MetalNRG, with MetalNRG having a casting vote at board level.

 

The special purpose vehicle entered into a binding exclusivity agreement on 10th June 2020 with the purpose of acquiring 100% of the equity capital of a UK based, privately owned Oil & Gas Operator (ref. RNS 6730P, dated 11th June 2020).

 

The exclusivity period has allowed MetalNRG to complete the technical, financial and legal due diligence, negotiate  the detailed terms of the Share Purchase Agreement (SPA) which will regulate the transaction, acquire the necessary understanding of the field operations and initiate the necessary liaisons with key stakeholders, including; UK Regulators, local authorities, business partners and current landowners. A thorough risk assessment of the venture has been completed.

 

The results of our due diligence and the resulting risk assessment processes have been deemed satisfactory and the relations with the stakeholders are proceeding as required; however, due to restrictions relating to Covid-19, these proceedings have been delayed.

 

As a result, MetalNRG will finalise and then enter the SPA with the Vendor and, subject to satisfaction of certain Condition Precedents, we estimate that the transaction will be completed, concluding the transfer of the Oil & Gas Operator's equity capital, within the next three to four weeks.

 

Rolf Gerritsen, CEO of MetalNRG commented "We are very pleased with the outcome of the due diligence, which confirmed our initial projections, as well as with the collaborative relationships with the Vendor, our partners and the UK Regulators. We are now looking forward to completing the acquisition and we are confident we are fully prepared to take control of the running of this Oil & Gas operation."

 

 

For further information, please contact:

 

METALNRG PLC - Rolf Gerritsen (Chief Executive Officer)

+44 (0) 20 7796 9060

Joint Broker PETERHOUSE CAPITAL LIMITED - Guy Miller/     Duncan Vasey/Lucy Williams

+44 (0) 20 7469 0930

Joint Broker SI CAPITAL- Nick Emerson

+44 (0) 1483 413500

 

 

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact This email address is being protected from spambots. You need JavaScript enabled to view it. or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Private Policy.
 
END
 
 
NRAEAAPKAELEEAA

Content Original Link:

https://ir.q4europe.com/Tools/newsArticleHTML.aspx?solutionID=3702&customerKey=MetalNRG&storyID=14794237