MetalNRG plc (LON:MNRG), the natural resource investing and exploration company, announces an update on the Oil & Gas exclusivity agreement, non-binding for MetalNRG, entered into with the owner of an established operating company based in Romania (the Vendor), which owns 100% of a target oil and gas concession, valid to 2034, as announced on 29th November 2019.
The purpose of the exclusivity agreement is to set out the heads of terms upon which the purchasing parties will acquire 75% of the issued share capital of the operating company from the Vendor, in consideration of an upfront payment and a free-carry component of the initial development capital. The agreement also sets the terms for the exclusivity period necessary to allow the purchasing parties to review and carry out due diligence on the transaction. The exclusivity period has commenced and will run until 28th February 2020.
The process is ongoing per plan and the initial indications, mainly from our site visit, are encouraging and suggest that the transaction could, based on current operational assumptions, meet our investment criteria. Specifically, under our plan we intend to establish exploration upside for the project and that we can develop short term cash-flow from the asset under review. As a result of these initial indications, further work has been commenced and we plan to report back to market once the due diligence has been completed.
Rolf Gerritsen, CEO of MetalNRG commented “The opportunity in Romania is significant and Pierpaolo Rocco, our Executive Director for Oil & Gas along with the Board of MNRG are extremely encouraged by the initial results from our site visit. We are working hard on this opportunity and will report back to market shortly.”
Rolf Gerritsen, CEO of MetalNRG, arranged for the release of this announcement.
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