Prospex Oil and Gas plc announced Friday that it has conditionally agreed to acquire a 49 percent stake in Hutton Poland Ltd, from Hutton Energy Ltd, for £620,000 ($906,781) in cash.
As part of the deal, Prospex will pay an initial amount of £130,000 ($190,079) with the remaining £490,000 ($716,649) deferred up to August 31, 2016. Hutton has been active in Poland since 2009 and currently holds a number of concessions in the country, including the recently awarded Kolo License.
Commenting on the transaction, Bill Smith, Prospex chairman, said in a company statement:
"Following the review of many projects we are delight to make our first investment into Hutton Poland Ltd. We are very much looking forward to the partnership. Hutton are a proactive group with good working relationships in country. We are impressed with positive attitude of the government and the positive business environment that the exploration business can operate within. Hutton have done a huge amount of ground work and this will allow rapid progress of its assets from this stage."
David Messina, Hutton Energy Managing Director, said in a company release:
"We are pleased to welcome Prospex to Poland and look forward to working with them, as we target low risk conventional prospects which still provide strong returns with cost effective drilling, a robust domestic gas market and a supportive government. We believe the recent success of Palomar Resources and FX Energy targeting conventional gas in Poland demonstrates Poland still has a lot to offer."
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