Energean Oil & Gas plc (LON: ENOG) said on Wednesday that it struck an agreement with Kerogen (private equity group) to buy the remaining 30% stake in Energean Israel Limited (EISL). Following the completion of the transaction, the gas exploration and production firm will have full control of its subsidiary.
According to Energean, it will invest £279.39 million to £297.77 million to buy the stake in its Israeli offshore fields. The London-based company valued upfront payment at £128.67 million while the remaining up to £132.34 million, it added, will be deferred to be paid from the company’s future cash flows.
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The acquisition will add 219 million oil-equivalent barrels to Eneargean’s portfolio
The FTSE 250 listed company also highlighted on Wednesday that the acquisition includes convertible loan notes worth £36.76 million as well. The deal, as per Energean, will add roughly 219 million oil-equivalent barrels to its portfolio.
Energean opened more than 2% down on Wednesday but gained close to 4% in the next hour. Including the price action, the stock is now exchanging hands at £7.09 per share versus a much lower £2.98 per share in March when the impact of the Coronavirus pandemic was at its peak.
In comparison, Energean had started the year 2020 at a per-share price of £9.29. At the time of writing, it is valued at £1.26 billion.
Power Metal Resources starts maiden drill programme at the Haneti nickel project
In separate news from the United Kingdom, Power Metal Resources (LON: POW) its maiden drill programme was now underway in Tanzania. CEO Paul Johnson said in a statement on Wednesday:
“Today’s announcement represents a watershed moment in the life of the Haneti project with the maiden drilling programme now underway. The project is prospective for both nickel sulphide and PGM mineralisation, and the targets form part of an 80 km long ultramafic rock complex that we believe has the potential to deliver a large-scale metal discovery. With Haneti a discovery can only be achieved through drilling, and we are particularly excited to see this drilling programme now fully underway.”
The British mining firm currently holds a 35% stake in the Haneti nickel project.
Power Metal Resources jumped close to 5% in premarket trading on Wednesday and gained another 5% on market open before losing the entire intraday gain in the next hours. At the time of writing, the company has a market capitalisation of £25.56 million.