Under the terms of the Acquisition Agreement, the Company has today:
1) Issued the Consideration Shares being 8 million ordinary shares of 0.05p each in the capital of Company and has applied for these shares to be admitted to trading on AIM for November 16, 2007;
2) Acquired the entire issued share capital of CpS, whose major assets include 88.75% beneficial interest in the La Lora License (which within lies the Ayoluengo Field) and a 50% interest in certain exploration licenses within the Junta de Castilla y Leon in the Province of Burgos in Spain corresponding to the permits "Huermeces, Valderredible and Basconcillos";
3) Been notified that approximately 11,600 barrels of oil and 4,200 mscf of gas have been produced in respect of the Ayoluengo Field since August 1, 2007, which will accrue to the Company's account.
Accordingly, a total of 393,400,027 Ordinary Shares of 0.05p each will commence trading on AiM with effect from November 16, 2007 following the reverse transaction. The Company further advises that it has formally engaged TRACS International Consultancy, an independent consultancy specializing in petroleum reservoir evaluation and economic analysis. Tracs have already commenced an initial immediate strategic review of the Ayoluengo Field to establish ways to enhance current production and increase recoverable reserves via technical evaluation.
David Lenigas, Executive Chairman, commented:
"The acquisition of CpS assets in Northern Spain and associated exploration licenses is a significant milestone for the Company.
The completion of this acquisition and the potential of significantly increasing production from the Ayoleungo Field demonstrates our stated strategy of acquiring producing assets as well as advanced exploration plays.
We look forward to working with Tracs to maximize the value of this field over the coming year."
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