The Board of Brady, the AIM listed natural resources focused investing company, today announces that it is at an advanced stage of acquiring the entire issued share capital of Energy Equity Resources (Norway) Limited (“EERNL”). EERNL is a UK incorporated company with oil and gas interests in Nigeria. The consideration for the proposed acquisition (the “Proposed Acquisition”) is to be satisfied through the issue of new ordinary shares in Brady to the shareholders of EERNL.
The Proposed Acquisition would constitute a reverse takeover under Rule 14 of the AIM Rules for Companies (the “AIM Rules”) and will therefore be conditional, inter alia, upon the publication of an admission document by the Company and the approval of Brady’s shareholders at a general meeting. The Proposed Acquisition will also be conditional on the raising of additional equity finance.
In accordance with the AIM Rules, trading in the Company’s ordinary shares will be suspended with effect from 7:30 a.m. today, pending publication of an admission document by the Company or an announcement that the Proposed Acquisition is no longer proceeding.
EERNL was founded in 2004 and is focused on identifying, acquiring and developing interests in oil and gas assets in Nigeria, including the prolific Niger Delta, and developing and bringing acquired oil and gas assets into production. Nigeria holds the 10th largest proven oil reserves in the world with over 80 billion barrels.
EERNL has worked with a number of the international oil companies and major independent companies including Chevron, Essar and Afren. EERNL currently has interests in four assets with net contingent resources of around 40 million barrels of oil equivalent. Since 2008, EERNL has drilled, or participated in the drilling of, a total of four wells, the engineering and construction of an offshore facility and the development of two fields.
Over recent years, EERNL has raised over US$30 million of equity investment from a number of major institutional and private investors in both Nigeria and the UK. The directors of EERNL believe that now is the appropriate time in EERNL’s development for it to seek a listing on AIM through the Proposed Acquisition.
The Proposed Acquisition also remains conditional on, inter alia, the satisfactory conclusion of the Company’s due diligence into EERNL and is subject to the granting of a waiver of the obligation to make a general offer pursuant to Rule 9 of the City Code on Takeovers and Mergers.
Whilst the Proposed Acquisition is at an advanced stage, there can be no certainty that it will be concluded successfully.
Alex Borrelli, Chairman of Brady, commented:
“We are delighted to have reached this advanced stage with EERNL which we believe represents a significant opportunity for Brady to be able to participate in the oil and gas sector in one of the world’s most important oil producing countries. We believe that this is an attractive opportunity for shareholders and expect to be able to provide a further update shortly.”