Corporate M&A

Ascent Resources Acquires Energetical, Plans Further Acquisitions in Cuba

By Shriya Bhargava
April 15, 2020
a minute read
Three Oil Pumpjacks

AIM-listed E&P company Ascent Resources Plc has entered into an agreement to acquire UK-based Energetical Ltd., which holds the exclusive rights to secure a Production Sharing Contract (PSC) for Block 9B located onshore Cuba.

The initial consideration for the acquisition comprises the issue of 6,000,000 new ordinary shares to the selling shareholders of Energetical, valued at approximately £232,800 based on Ascent’s closing share price of 3.88 pence 1-day prior to the transaction announcement. A further £450,000 of deferred consideration will be payable on the execution of PSCs covering the Block 9B, of which £350,000 will be satisfied by the issue of new ordinary shares priced at the 30 day VWAP at the time of issue, and £100,000 will be paid in cash. The sellers have also agreed not to dispose of any of the consideration shares for 1 year.

Block 9B is located onshore on the north coast of Cuba, located approximately 120 km east of Havana. The block contains the Majaguillar and San Anton fields, that currently produce around 190 barrels of oil per day from 3 wells. Energetical had previously entered into a Memorandum of Understanding with Cuban national oil company CUPET giving it exclusive rights to enter into a PSC over the block.

Ascent Resources also plans to review potential further acquisitions to develop a broad Cuban portfolio across both oil & gas and potentially mining. The company’s operations are currently focused on the Petišovci gas project in north-eastern Slovenia.

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