MetalNRG Strikes Deal to Buy UK Onshore Assets
London-based natural resources investor MetalNRG has signed a head of agreement (HoA) to buy a group of onshore oil and gas assets in the UK from unnamed sellers, it said on July 11.
The assets are conventional, producing licences that are cash generative and cover their operating costs at current oil prices. MetalNRG's aim is to acquire the fields within three months, subject to due diligence and the finalisation of a sale and purchase agreement.
MetalNRG said it had spent two months appraising the assets and negotiating the HoA. It has conducted a site visit, reviewed technical, financial and operational data and prepared preliminary operation and development plans.
The company's plan is to form a joint venture with private investors to acquire 100% of the assets. The HoA gives them exclusive negotiating rights.
MetalNRG also said it had revised the terms of its planned acquisition of a 75% stake in a Romanian oil and gas concession. The company began negotiating the deal in November but said in March it wanted to reopen talks with the unidentified seller, in light of weaker market conditions.
"The revised terms are substantially different from the previous terms and therefore the vendor is considering its position," MetalNRG said.
The company is "screening other potential opportunities in the UK and Romania," to "create a balanced portfolio of low-risk oil and gas producing assets."