Grove to Merge UK North Sea Assets with Nido Petroleum & Virgo Energy
Grove Energy Limited (Grove) advises that it has entered into a definitive Heads of Agreement (HOA) with Virgo Energy Limited and Nido Petroleum Limited (Nido) to merge their UK E&P assets and to subsequently list the combined company on the Alternative Investment Market (AIM) of the London Stock Exchange plc during the first half of 2006. The new London based company will be called Virgo Energy plc (Virgo).
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.
- Philippines' Galoc Phase 3 Oil Field Development Plan for Start-up in 2019 (Aug 17)
- Partners Nearer to Further Development of Galoc Oil Field Offshore Palawan (Jul 14)
- Otto Energy Completes Sale of Galoc Production Co. Stake to Nido for $106M (Feb 17)
Company: Grove Energy Ltd. more info
- Sterling Resources Ups Interest in Craiova Block Onshore Romania (Aug 18)
- Stratic Energy Sells Offshore Tunisia Interests for $1 Million (Jan 07)
- Grove to Cancel AIM Admission (Apr 27)
Company: Virgo Energy more info
- EnCore Bolsters UK Portfolio (Jan 17)
- Encore Oil to Undertake Offshore Gas Storage Feasibility Study (Dec 15)
- EnCore Oil Increases North Sea Portfolio (Oct 25)