Xplorer plc has signed a memorandum of understanding (MoU) for the acquisition of a significant working interest in five shallow offshore exploration permits off the coast of Morocco.
Xplorer is a company formed for the purpose of acquiring a company, business or asset that has operations in the oil and gas exploration and production sector that it will then look to develop and expand.
Xplorer has negotiated the acquisition from Teredo International Limited of Teredo Morocco Limited, which holds a 36.75% working interest in the Boujdour permit in return for Teredo being issued 56% of the post-proposed acquisition but pre-fundraising enlarged share capital of the company.
Boujdour consists of five shallow offshore exploration permits off the coast of Morocco. Xplorer says that Boujdour is prospective for both oil and gas, and is estimated to have mean net un-risked prospective resources of 463.4 MMBOE (millions of barrels of oil equivalent), of which 31.07 MMBOE are categorised P90 and 182.65 MMBOE are categorised P50.
According to Xplorer, the proposed acquisition is conditional, inter alia, on Xplorer raising additional equity finance for which there is no certainty that the company will be able to conclude successfully. The proposed acquisition, if exchanged and completed, would constitute a reverse takeover (RTO) under the Listing Rules.