Sound Energy (SOU)has announced a Heads of Terms with Saffron Energy (SRON) and Po Valley by which Sound disposes of its portfolio of Italian interests and permits to Saffron. They will receive Saffron shares which they intend to distribute to shareholders.
This, together with the grant by Po Valley to Saffron of a call option to acquire all of Po Valley Operations Limited, will result in the combination of the Italian oil and gas portfolios of all three companies to be re-named Coro Energy plc.
James Parsons is to be the non-executive chairman, Sara Edmonson CEO and Fiona MaCaulay will be a non-executive. Sound will retain the rights to the Badile land, in the books at £1.6 million plus Italian VAT receivables of £4 million.
Coro is to be a mid-cap regional gas producer and explorer, and will become a consolidated Italian vehicle with a European gas “growth trajectory”.
It looks to me like a creative deal with Sound shareholders receiving shares and post regulatory suspension could be very exciting. The best if the directors, management and combined on the ground teams will play to their strengths, and I wouldn’t be surprised if Continental didn’t appear as a cornerstone investor.
This looks very like Sound 111 with an accent on fair treatment of retail investors as Sound and Echo (ECHO) shareholders have become accustomed to. With the excitement of the return from suspension and the formation of another new company to look forward to, tonight’s river cruise should be quite a party…..
SDX (SDX) has announced an oil discovery at Rabul 2 in the West Gharib concession in Egypt. The well encountered 101.5 feet of net heavy oil pay across the Yusr and Bakr sand formations. The company expects the well will be completed as a producer and connected to central processing facilities at Meseda.
Paul Welch President and CEO said: “the well came in ahead of expectations and the ultimate potential will be better understood once the well is completed and tested”.
This is a great start to an extensive drilling programme in Egypt and Morocco and stamps SDX as one of my favourite stocks in the sector.
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.