Virgo will be focused in the UK North Sea E&P sector and will hold interests in 24 exploration blocks, comprising four in the Northern North Sea, five in the Central North Sea and 15 in the Southern North Sea. These blocks represent 3,344 square kilometers (gross) and 1,482 square kilometers (net). Of the 24 exploration blocks, nine will be contributed by Virgo, seven by Grove and eight by Nido.
Virgo's portfolio will be of sufficient size and diversity to ensure an aggressive and active 2006 exploration program while mitigating risk by portfolio diversification.
An independent Chairman and industry experienced CEO are soon to be appointed to the board of Virgo. In addition, Grove and Nido will each appoint one board member and Virgo Energy Limited will appoint two. On a pre-IPO basis Grove will hold a 27.5% interest, Nido 25% and Virgo 47.5%.
Grove believes that its shareholders will benefit from the merger - any success by Virgo will immediately add value to Grove; Grove's shareholders gain exposure to a more diversified portfolio of UK North Sea assets which will be funded by Virgo, whilst Grove will continue to focus on its European and Mediterranean assets.
Virgo Energy Limited is a private, UK based, E&P company established on 23 February 2004 to invest in offshore oil and gas exploration and extraction in the UK North Sea and is the operator of six of the nine blocks being contributed to the merger. The nine blocks contributed by Virgo Energy Limited represent its entire portfolio of E&P assets.
Nido is an Australian based E&P company, listed on Australian Stock Exchange Limited. Nido's core areas are in the Philippines and the North Sea.
Grove is listed on the TSX-V and on AIM in London with a focus on Europe and the Mediterranean basin. Grove's E&P assets are located in UK, Italy, Tunisia, Romania and Slovenia.
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