Oil & Gas Corporate News
Sound Oil (LON:SOU) PLC (SOU LN, 2.83p, ? 1.80%) today announced the acquisition of Celtique Energie SpA ("Celtique") which materially uplifts Sound Oil's core NPV, together with the signature of Heads of Terms for a private placement of new ordinary shares. Celtique is a private Italian company that owns 50% working interests in three permits in Italy: Torrente Alvo (Strombone oil discovery), Carita (Nervesa gas discovery), and Monte Negro (gas exploration). Sound Oil previously held a 50% interest in each of these permits which now increases to 100% as a result of the acquisition. The total consideration is US$9.0 million comprising US$5.0 million in cash from the Company's existing funds (cash consideration of US$4.4 million and US$0.8 million in settlement of an inter-company loan net of US$0.2 million cash held by Celtique), 59,003,029 Sound Oil ordinary shares to the value of US$2.5 million (locked in for between 6 and 24 months) and 32,995,553 Sound Oil ordinary shares to the value of US$1.5 million (not subject to a lock in); all the consideration shares are subject to an orderly marketing arrangement. The total acquisition price represents US$1.8/boe.
All three permits have been the subject of an updated Competent Persons Report undertaken by Fugro Robertson which included the following key estimates in relation to Celtique's permits: Best estimate of contingent oil resources (2C) at Strombone of 6.4 MMbo (3.2 MMbo Celtique share) with a NPV10 success case of US$131.0 million (US$65.5 million Celtique share), and best estimate of contingent gas resources (2C) at Nervesa of 20.7 Bscf (10.4 Bscf Celtique share) with a NPV10 success case of US$61.6 million (US$30.8 million Celtique share). In addition the Company has signed Heads of Terms with Astin Capital Management Limited ("Astin") on behalf of investment funds managed by Astin to fund drilling operations with a minimum of £4 million new equity across two tranches of ordinary shares. The funding is subject to a final legal agreement to be completed within 30 days, and the Company intends to use the funds raised for drilling operations, including the Nervesa discovery, during 2012.
Solo Oil (LON:SOLO) PLC (SOLO LN, 0.68p, ? 6.25%) today announced that it has secured a three year Equity Line Facility ("ELF") of up to £10 million with Dutchess Opportunity Cayman Fund Ltd ("Dutchess"). The ELF has been…
