Bill Gross warns on gold momentum as regional bank stocks tumble
LONDON - Pennpetro Energy Plc (LSE:PPP) has signed heads of terms to acquire the Limnytskyi oil and gas exploration license in western Ukraine through a newly incorporated Polish holding company, the firm announced Wednesday.
The 172 square kilometer license is located in the Carpathian basin near Ukraine’s border with the European Union. According to the company’s statement, the region has seen more than 100 oil and gas fields discovered to date.
The planned acquisition would constitute a reverse takeover under UK Listing Rules as it would exceed 100% on relevant class tests and result in changes to Pennpetro’s board and voting control. Current Pennpetro shareholders would hold a minority interest in the enlarged group if the deal completes.
Pennpetro plans to immediately re-enter a previously abandoned well and acquire 3D seismic data before drilling a second well. The company stated that analysis of recently acquired 2D seismic data and Soviet-era well information has identified several prospects.
The transaction remains subject to legal and financial due diligence, regulatory approvals, and execution of a definitive share sale and purchase agreement. Additional conditions include Pennpetro shareholder approval at a general meeting and publication of a prospectus with Financial Conduct Authority approval.
Stephen Lunn, Chairman of Pennpetro, described the agreement as "transformational" for the business, adding that capital requirements associated with the license are "minimal."
The announcement follows the company’s September 25 update referencing a condition of its Convertible Loan Note to execute heads of terms with RMD Group and partners regarding acquisition of a European oil and gas license.
The information was provided in a press release issued by the company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.