Leni Gas & Oil plc announced that it has acquired 3,348,554 new shares in Byron Energy Pty Ltd, giving it 22.3% of the issued share capital of Byron for an aggregate cost of approximately US$22 million in cash.
Under the terms of the deal the Company subscribed for 2,798,554 new ordinary shares in Byron at a price of US$6.57 per share. The aggregate price for the subscription shares was US$18,386,499.78. The Company acquired options over 550,000 new shares in Byron from various existing parties at a price of US$6.00 per option share. The Company exercised each of the options which had an exercise price of A$0.60. Finally, Leni Gas & Oil shall be entitled to appoint and maintain a director on the board of Byron for as long as it maintains an interest of greater than 15%.
David Lenigas, Chief Executive said, "The acquisition of the shares in Byron is a significant addition to our Company's assets. Through its Scouting Agreement with Leed, Byron has a 25 per cent option over exciting assets introduced to Leed, by Byron, in the Gulf of Mexico and the United States. Byron is an exciting prospect that complements Leni Gas and Oil's existing exploration projects."
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