- Oil and gas producer Energean entered into a conditional sale and purchase agreement to acquire Edison Edison E&P from Edison for $750m, and detailed plans to raise up to £211m through the placing of shares to support the acquisition.

The acquisition would 'significantly increase Energean's scale and diversification by adding a complementary portfolio of accretive development, appraisal and exploration opportunities, whilst immediately contributing EBITDAX and cashflow to support the Enlarged Group's strategic growth and medium term ambition to start paying a dividend,' the company said.

The enlarged group would have a total of 639m barrels of oil equivalent of 2P reserves and would be one of the 'largest independent E&P companies listed on the London and the Tel Aviv Stock Exchanges,' the company said, with a trajectory to produce up to 200,000 barrels of oil a day.

The initial consideration for the acquisition is US$750m with additional contingent consideration of US$100m payable following first gas at the Cassiopea development.

Edison would also receive an 8% royalty on profit production resulting from future discoveries made by upcoming exploration wells in the North Thekah Offshore and North East Hap'y Blocks, offshore Egypt.

'The Acquisition is subject to relevant anti-trust and regulatory approvals. Since the Acquisition constitutes a reverse takeover for the purposes of the Listing Rules, Energean will need to seek shareholder approval and re-admission of its ordinary shares to the Official List upon completion of the Acquisition, which is targeted by Q4 2019,' Energean added.

Story provided by