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.”
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