Corporate M&A

Ansila Energy Acquires Remaining Interest in Hartshead Resources

By Isha Makkar
December 15, 2020
a minute read
Hartshead Resources

ASX-listed Ansila Energy NL has entered into a Share Sale Agreement (SSA) with the existing shareholders of privately-held Hartshead Resources Ltd. (HRL) to acquire a further 78.4% stake in the company, for a total consideration of A$25 million in Ansila stock. Ansila currently holds a 21.6% stake in HRL, which it acquired as part of a seed capital raise in July last year.

Under the terms of the agreement, Ansila will acquire the remaining shares of HRL that it does not currently own in exchange for the issuance of 1 billion fully-paid ordinary shares of Ansila, valued at a deemed price of A$0.025 per share.

Upon completion of the transaction, HRL will operate as a wholly-owned subsidiary of Ansila, and its current executive directors Christopher Lewis and Andrew Matharu will be appointed CEO and CFO, respectively, of Ansila.

HRL was incorporated in the UK as a special purpose vehicle in April 2019, with the objective of making a license application in the UK 32nd Offshore Licensing Round, which closed in November 2019. The company was provisionally awarded a license comprising five blocks in the Southern North Sea (SNS) in the licensing round. The license contains four discoveries with combined 2C contingent resources of around 354 billion cubic feet (Bcf).

Perth-based Ansila Energy is focused on building a portfolio of E&P assets in Africa, and currently has operations offshore Gabon and Madagascar. In July 2019, the company had entered into an agreement with Gemini Resources Ltd. to earn a 35% interest in the Nowa Sol and Gora onshore oil & gas projects in Poland.

The deal is subject to customary closing conditions, including the receipt of shareholder approvals, due diligence, and HRL being formally awarded the SNS license.

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