Trading in shares of the AIM-listed oil company Hague and London Oil PLC (HALO) will remain suspended longer than initially planned due to delay in publication of the new admission document required following a reverse takeover deal.
HALO announced the conditional acquisition of non-operated natural gas production assets in the Dutch North Sea from Tullow Netherlands Holding Coöperatief B.A. on April 10, 2017.
It agreed to acquire the assets through the purchase by its wholly owned subsidiary, Hague and London Oil B.V. (HALO B.V.), of the entire issued share capital of Tullow 101 Netherlands B.V. (Tullow 101).
The acquisition comprises interests in a suite of offshore exploration and production licences on the Dutch Continental Shelf (DCS) within the Northern Area and Joint Development Area (JDA) in the western part of the DCS, which collectively generated total net production of 2,900 boepd in 2016.
The company said on Tuesday that, since April 2017, significant progress has been achieved by the parties, including on the preparation of a Competent Person’s Report (CPR). HALO is also materially advanced in its discussions with Engie regarding the provision of structured finance for the transaction.
Given the scale of the acquisition when compared to the existing group, the acquisition constitutes a reverse takeover under Rule 14 of the AIM Rules and requires the company to issue a new admission document and is conditional, inter alia, on the approval of the acquisition by shareholders. The company is in the process of preparing an admission document relating to the acquisition and readmission to trading on AIM of the enlarged group.
According to HALO, in order to allow for an orderly completion of all the commercial and legal discussions, the parties have agreed to an extension of the timetable with the aim to publish the admission document by October 1, 2017. The admission document was previously planned to be published by August 1. In the meantime, trading in the company’s ordinary shares on AIM remains temporarily suspended until the publication of the admission document.
Andrew Cochran, Chairman and Interim Chief Executive of Hague and London Oil plc, commented: “We are fully focused on progressing this transaction to its successful completion despite its complexity and large scale in comparison to HALO’s current operations. This acquisition will be transformational for our business, giving us exposure to existing production and associated infrastructure, with access to significant upside. This is an important step towards repositioning HALO as a sizeable independent oil & gas player focused on lower-risk opportunities in well-established provinces.”