UK's MetalNRG Renegotiates Romanian Purchase
UK natural resources investment firm MetalNRG has reopened talks on its acquisition of a 75% stake in a Romanian oil and gas concession in light of the oil price collapse, it said on March 26.
The company began negotiating the deal in November and has now completed its due diligence. But it has proposed alternative terms, it said, given low prices and the weak market outlook.
"The new terms are being considered by the vendor and we expect them to revert by the end of the current month, although some slippage can be expected due to Covid-19," MetalNRG said.
The company added that the current market situation also presented new "potentially attractive" transactions in the oil and gas industry. It is now actively pursuing projects with strategic intent, it said, focusing on those that offer short-term cashflow and additional exploration upside.
"We continuously review our cash and liquidity position and are confident that we will be able to weather the storm and come out of this crisis stronger than before," it said.