As well as strong free cash flow, the deal is expected to deliver extensive operational synergies, predictable low-decline production, and a large reserve base with multi-year development inventory.
It is raising £40mln to support the transaction, via a share placing and a retail offer via the platform. After an accelerated bookbuild process, the company confirmed that it will issue 363.7mln new shares at a price of 11p per share, marking just a 3% discount to the 15-day average closing price.
“We continue to execute on our business plan which is to build and grow a material and diversified production business through the most efficient deployment of capital, whether that is through exploitation of opportunities within the company’s existing portfolio or through accretive acquisitions such as this one,” said chief executive Majid Shafiq.
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