London-listed explorer Wessex Exploration has signed a heads of agreement to acquire Hague & London Oil (Halo) which holds a prospective asset in the Philippines.
Consideration for the acquisition will be satisfied by the issue to the vendors of 241m ordinary shares in the company, about 25% of the enlarged capital. On completion, the Heads of Agreement calls for HALO to hold US$1 million in cash.
Highlights of the proposed transaction included:
- Company with highly prospective asset in the Philippines to be acquired
- Andrew Cochran and Bill Phelps (ex-Coastal Energy) to join the Board
- Proposed new Directors have a proven track record in international oil and gas exploration companies
- Near-term potential production asset in a well-known region with further exploration upside
- Consideration to be paid in shares, HALO to bring US$1 million in cash
- Demonstrates ongoing implementation of the strategy defined by the Directors