Zeg Oil & Gas Acquires Control of Oryx Petroleum
The Addax & Oryx Group Plc (AOG) has signed an agreement for the sale of its entire 67% stake in TSX-listed E&P company Oryx Petroleum Corporation Ltd. to Zeg Oil & Gas Ltd., for a total sale consideration of US$16.4 million.
Zeg, a privately held oil field services company with operations in the Kurdistan Region of Iraq, currently holds a 22% stake in Oryx. As part of the transaction, Zeg will acquired an additional 380,527,641 ordinary shares in Oryx, increasing its ownership in the company to approximately 89%.
The deal also includes the acquisition of additional warrants by Zeg. After giving effect to the exercise of all the warrants, Zeg would own an aggregate 90% of the total outstanding shares of the company.
Concurrently, Oryx has also entered into an agreement to settle an outstanding US$79.8 million loan from an affiliate of AOG in full through the transfer of its 85% participating interest in the AGC Central offshore exploration license located in the Senegal-Guinea Bissau Joint Development Zone to AOG. Following the completion of both transactions, Oryx’s sole asset will be a 65% operated interest in the oil producing Hawler PSC in the Kurdistan Region of Iraq.
The transaction with Zeg, which will result in a change of control of Oryx, is subject to customary closing conditions and prior settlement of the AOG loan, and expected to be completed by Q3 2020.