(Alliance News) - Shares in Anglo African Oil & Gas PLC rose Monday as it welcomed a new investor, Forum Energy Services Ltd.
Riverfort Global Opportunities PCC and YA II PN Ltd will be selling 84.0 million shares to Forum Energy at 0.5 pence each, for a total of GBP420,205. AAOG will get GBP361,376 of this.
Shares were 13% higher on Monday morning at a price of 0.39p each.
AAOG will use the proceeds to pay off debt, and alongside the GBP1 million sale of Republic of Congo assets to Zenith Energy Ltd announced last week this will give the company enough funding for six months.
AAOG will become a cash shell once the disposal of the Congolese business has completed. It will consider takeover options in future.
Forum Energy will get the right to appoint up to three directors to the AAOG board. Current Non-Executive Director Phil Beck will leave once the first Forum Energy nomination joins.
Sarah Cope, chair of AAOG, said: "The board has considered several offers to purchase the ISA shares and has, in consenting to the purchase by Forum, given consideration to the long-term interests of the company rather than purely immediate financial gain.
"The board is confident that, of all the potential partners considered, Forum has the clearest vision and best contacts that will enable it to deliver value for shareholders in the long term."
By George Collard; georgecollard@alliancenews.com
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