Eden to merge UK assets with JV partner UKOG
PERTH (miningweekly.com) – ASX-listed Eden Energy is considering merging its UK gas and petroleum assets with its UK joint venture (JV) partners, owned by UK Onshore Gas (UKOG).
Eden said on Wednesday that it would transfer its 13 petroleum and development licences in England and Wales, to UKOG. Post the merger, UKOG would issue Eden subsidiary Adamo Energy with a 33.33% shareholding in the combined company, as well as £1-million unsecured noninterest bearing loan notes.
Adamo would also receive a further £69 210 unsecured noninterest bearing loan notes in repayment of certain prepaid licence fees and £75 000 unsecured noninterest bearing loan notes as compensation for a pre-existing liability of one of UKOG’s subsidiaries, which would not be discharged prior to the completion of the merger.
Following the merger, UKOG would either list on the Aim, after raising about £10-million, or would complete one, or more, off-market capital raisings of at least £10-million.
Adam would also appoint a director to the UKOG board.
The merger agreement was subject to a number of conditions, including Eden shareholder approval and the finalisation of UKOG’s accounts for the year ended December 2013.
Eden reported that a shareholding in UKOG, rather than a shareholding in the project areas, would provide a far better structure from both an operational perspective and for capital raising purposes, as it eliminated a major potential source of conflict between the JV partners. As a result, the projects would likely be viewed as a better investment by the financial markets, the company said.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation