AIM-traded international oil and gas company San Leon Energy has agreed to acquire TSX Venture Exchange-listed Gold Point Energy in an all-share deal worth $1.5 million.
AIM-traded international oil and gas company San Leon Energy has agreed to acquire TSX Venture Exchange-listed Gold Point Energy in an all-share deal worth $1.5 million (£1 million).
Dublin-based San Leon, which has assets in Morocco, the Netherlands and the US, says the deal will enhance its portfolio with potential high-value development and exploration assets in Poland and the US.
Payment will be made once the offer has been accepted and 12 months later. Gold Point shareholders are set to receive one San Leon share, valued at £16.50, for six of their own shares.
In addition to the physical assets, the company says its management team will benefit from Gold Point’s team of talented petroleum geologists.
Phil Thompson, CEO of San Leon Energy, said: “We are very pleased with this success. It is in keeping with our overall strategy to develop a balanced portfolio of exploitable assets that provide value to our shareholders.
“With the clear need for Poland to develop domestic energy resources, we are confident that there is a terrific opportunity to deliver significant value.”
San Leon floated in September to use its shares as acquisition currency to build up its assets. Its market capitalisation on admission was £100 million. On completion, Gold Point shares will be de-listed from the TSX Venture Exchange.