Merging in a time of difficulty
Britain's Aurelian Oil & Gas Plc on Monday agreed to farm out a 40 percent interest in Poznań concessions to Canamens Energy Limited, at a time when investors are cautious to carry out mergers and acquisitions.
According to Aurelian, the farm-out should secure sufficient funding to take the project to the next stage of its development. Canamens will meet 80 percent of the costs of Aurelian's 90 percent stake with plans to include two new wells and installation of gas production and pipeline facilities of a cost up to €40 (zł.146) million.
"We are
particularly pleased to have been able to negotiate this agreement in these
difficult markets," said Michael Seymour, managing director of Aurelian in a
statement. "…this project will move into full commercialisation with gas being
sold into the high pressure system of the Polish market."
Shares in
Aurelian jumped 16.3 percent to 25 pence after the announcement.
Source: Reuters
