Sound Oil to launch takeover bid for Antrim Energy
Sound Oil, the European focused upstream oil and gas company, intends to launch a public offer for 100 per cent of the share capital of Antrim Energy Inc. Antrim is a Canadian-based international oil and gas exploration company whose main asset is the Skellig Block, offshore Ireland (25% interest).
The company said that the combined business would leverage Sound Oil’s technical, financial and commercial expertise to maximise the potential of the combined group, creating a high impact exploration company with producing assets generating revenue covering its cost base and with both the scale and geographic diversity to appeal to a wider range of institutional and retail investors.
The intended offer for Antrim would offer for each Antrim share, 0.3198 new Sound Oil ordinary shares. The offer would value each Antrim share at 3.44p (based on the closing market price of 10.75p per Sound Oil share on 21 November 2014 on the AIM market of the London Stock Exchange,the last business day preceding this announcement. This values the entire issued share capital of Antrim at approximately £6.35M.
“Sound Oil’s strategy is to build a pan-European oil and gas business of scale, leveraging off its strong Italian portfolio. Sound Oil views a combination of Antrim and Sound Oil as representing an attractive step in the implementation of this strategy. Sound Oil believes the transaction has the potential to create significant value for both sets of shareholders,” Sound Oil said in a statement.
James Parsons, Sound Oil’s Chief Executive Officer, said: “Over the last two years, Sound Oil has built a high quality European team with solid foundations in Italy. Sound Oil now manages a balanced portfolio which combines solid production with low risk appraisal and significant exploration potential. The Company is approaching a very busy 2015 drill programme, which includes the drilling of the Badile prospect (Euro 486M NPV10) and the securing of first gas from our flagship Nervesa discovery.”
“By combining with Sound Oil, Antrim’s portfolio can be managed as part of a wider European portfolio and run by a Europe based team with a strong track record of delivering value to shareholders. The combination provides a pan European platform to enable further consolidation in the sector whilst delivering a more diverse portfolio, added scale and increased investor appeal. We are excited by the potential of the combined group and believe that the Intended Offer is enhancing to both sets of shareholders.”