Business
Acquisition of interest in Magnolia Petroleum plc
Acquisition of interest in Magnolia Petroleum plc.
About this update from Buccaneer Energy Plc
[{"type":"text","content":"\n \nRNS Number : 4031G Nostra Terra Oil & Gas Company PLC 26 May 2017 \n\n26 May 2017\n \nNostra Terra Oil and Gas Company plc\n(\"Nostra Terra\" or the \"Company\")\n \nAcquisition of interest in Magnolia Petroleum plc\n \nNostra Terra (AIM:NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, announces that it has agreed today to acquire 204,226,748 ordinary shares of £0.001 each in Magnolia Petroleum plc (\"Magnolia\") (the \"Magnolia Shares\"), which represents a 10.9% interest in the ordinary share capital of Magnolia.\n \nMagnolia is an AIM-quoted exploration & production company with assets in the mid-continent of the USA. Nostra Terra is making the investment as an alternative and additional way to increase its exposure to the oil and gas market in the USA. \n \nNostra Terra will acquire the Magnolia Shares for £125,000 consideration, equivalent to approximately 0.06 pence per Magnolia Share. As at close of business on 25 May 2017, the mid-market price of a Magnolia Share was 0.115 pence and accordingly, Nostra Terra is acquiring the interest in Magnolia at an approximate 47% discount to the prevailing price of a Magnolia Share. \n \nThe consideration for the Magnolia Shares will be payable as to £65,000 in cash and through the issue of 2,400,000 new ordinary shares of £0.001 each in Nostra Terra (\"Ordinary Shares\") (the \"Consideration Shares\"), at an implied issue price of 2.5 pence per share, which equates to a premium of 23% to the mid-market price of an Ordinary Share as at close of business on 25 May 2017. \n \nThe Magnolia Shares have been purchased from Steven Snead, the former CEO of Magnolia, and his family. \n \nNostra Terra also has the option to pay the full consideration in cash should it decide. The receipt of the Magnolia Shares and the issue of the Consideration Shares, should the Company not elect to settle the consideration fully in cash, is anticipated to take place on or before 30 June 2017. A further announcement will be made at that time. Until such point, it has been agreed that Nostra Terra has direction over the voting rights of the Magnolia Shares.\n \nFor the year ended 31 December 2015, Magnolia reported revenues of US$1,991,021 and a loss before tax of US$9,793,276. As at 30 Ju...