Blackbird Energy meets Thani Emirates Petroleum: A Canadian-Emirati explorer

Thursday, Sep 02 2010 by
8
Blackbird Energy meets Thani Emirates Petroleum A CanadianEmirati explorer

There are few opportunities for the ordinary investor to get involved with the activities of E&P companies controlled by people from the United Arab Emirates. Anything important within the country is usually state-controlled, while, when they're active overseas, the only option has tended to be through investing in companies with whom they share acreage. Now, though, there's an opportunity, through a reverse take-over deal between a Canadian minnow, Blackbird Energy (CVE:BBI), listed on the Toronto Venture Exchange, and Dubai-based Thani Emirates Petroleum.

The details of the deal are here but, in essence, Thani are selling their Netherlands subsidiary, Thani Netherlands Holding, TNH, (which holds their exploration acreage) to Blackbird, in exchange for an issue of shares amounting to 72,5 per cent of Blackbird's authorised share capital and a payment of $ Can 15 million. Following conclusion of the deal, Thani will control Blackbird and will have seven members, a controlling number, of its board of directors, while the company will then be re-named Thani Emirates Petroleum Inc. Consummation of the deal is also dependent on a number of factors, including

Completion of a financing in the amount of up to CDN$32.5 million shall  be completed on such terms and conditions to be determined by the Parties (the "Financing"), in compliance with Exchange policies
 
Clearly, getting access to some more funds is pretty crucial! Prior to the creation of the new Thani-controlled board, details of Blackbird management can be found here.  Interestingly, the Chairman is Robert Booth, who is also not unconnected to the UAE himself:
Currently the CEO for Emaar in North America, Mr. Booth oversees Emaar Canada and until June of 2009, also John Laing Homes the second largest home builder in the U.S. In addition, Mr. Booth is also a Director for Hamptons International, a European Real Estate Brokerage with 100 offices and 1,000 staff. Robert's career with Emaar since 2001 has covered various parts of the world in his responsibility for Development, Sales and Marketing. Robert Booth, in his capacity as the CEO of Emaar for North America, is to assist Emaar's entry into the Canadian market, and its subsequent expansion into the rest of North America.
 
Emaar is one of the big Dubai-based  property developers, (31.2% owned by the Dubai Government) so I guess that may have been the original link to Thani. The…

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Disclaimer:  

The author may hold shares in this company. All opinions are his own. You should check any statements that appear factual and seek independent professional advice before making any investment decision.


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ManSiarad 19th Oct '10 1 of 1
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Oh dear - the deal's off.

 

http://www.einnews.com/pr-news/188526-blackbird-energy-letter-of-intent-for-acquisition-of-oil-and-gas-division-of-united-arab-emirates-investment-fund-expires

 Blackbird Energy Inc. (TSX VENTURE:BBI) ("Blackbird" or the "Corporation"), announces that the letter of intent entered into with Thani Emirates Petroleum Cooperatif U.A. for the acquisition of its Oil and Gas division, as operated through Thani Netherlands Holding B.V. (the "Acquisition") has expired and the parties will not be proceeding to a definitive agreement. The Acquisition was to consist of Blackbird acquiring Thani Netherlands Holding B.V. ("TNH") from Thani Emirates Petroleum Cooperatief U.A.

Garth Braun, Blackbird CEO, stated, "Blackbird has worked diligently towards the definitive purchase agreement and arranging the required financing, however certain key issues remained unresolved that could not be rectified prior to expiration of the letter of intent. Specifically, we were not able to obtain comfort on certain key issues, most importantly one raised late in the process where the selling group had requested a provision in the agreement which would potentially increase their interest on a post closing basis, based upon certain conditions that we could not accept and that we felt would be unfairly dilutive to current shareholders. This is of course very disappointing, but our directors and officers will continue their tireless efforts to indentify additional opportunities to enhance shareholder value."

I wonder what ACTUALLY went wrong?

 

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About ManSiarad

ManSiarad

Resident in the United Arab Emirates for over thirty years, I've naturally become rather interested in the local oil and gas industry, and have written many  thousands of words about the industry's origins, history and current and future plans. From that perspective, I've tracked the UAE's involvement in Oil and Gas elsewhere, with a particular focus on the political and diplomatic aspects, especially in Central Asia and East Africa. I wouldn't claim to understand the technical side - at all - but am, at least, able to call on a few friends to try to explain it to me.  As always, in terms of investing, sometimes I get it right and sometimes I get it wrong. It provides an interesting diversion from other activities, though. more »


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