Gneiss Energy is pleased to announce that we have successfully advised Bahamas Petroleum Company plc (“BPC”) on a recommended all-share merger with Columbus Energy Resources plc (“Columbus”). The merger will be effected by way of a share for share exchange offer to be made by BPC for the entire issued and to be issued ordinary share capital of Columbus and is to be implemented by means of a Court-sanctioned scheme of arrangement.
The offer values the entire issued and to be issued share capital of Columbus at approximately £25.1 million and represents an 11% premium to Columbus’s closing price prior to the announcement. BPC shareholders will hold approximately 76% of the enlarged issued share capital, with Columbus shareholders holding approximately 24%.
Gneiss Energy is financial adviser to BPC on the transaction.
BPC is an AIM-quoted oil and gas exploration company focused on offshore exploration in The Bahamas and Uruguay. Columbus is an AIM-quoted oil and gas producer and explorer focused on onshore Trinidad and Suriname.
The combined entity will create a full-cycle c.£100 million market cap Caribbean and Atlantic margin focused oil and gas ‘champion’, with a balanced portfolio of exploration, appraisal, development and production assets.”
The combined entity will have access to high-impact offshore exploration in The Bahamas, with drilling of the Perseverance #1 well expected in Q4 2020 / Q1 2021, targeting 0.77 billion barrels of P50 prospective resources. It will also have material onshore exploration, appraisal and development projects in Trinidad, a material onshore appraisal and development project in Suriname, and longer-term exploration prospects of scale offshore Uruguay. All of this will be underpinned by existing production onshore Trinidad.
Our Oil & Gas team is delighted to have now announced its 5th transaction in 2020.
For the official press release, click here.