Dome Energy AB acquires Ginger Oil Company
Dome Energy AB. (herein after “Dome” and/or “the Company”) has signed a contract to acquire 100% of shares in the American entity Ginger Oil Company (GOC), for a consideration of MSEK 20 or 20m shares in Dome. The transaction is subject to bank review, and the shareholders’ approval in GOC’s parent company, Petrotarg AB (PT), at the assembly in mid-May 2017. It is also subject to a few diligence items, but transaction is believed to close shortly after PT’s assembly. GOC is a holding company with several non-operated interest in oil and gas wells in different US onshore basins. GOC has a total reserve value of MUSD 20 with a production of ~50 BOEPD. Dome will assume a bank debt of MUSD 2.5 as part of the acquisition. There is an additional payment due to PT if certain parameters are met over the next three years. This will be presented further after closing of transaction.
Paul Morch, CEO: “We are excited to finally close our proposed transaction with PT. The portfolio held by GOC holds some exciting wells, and we believe we can build a lot of shareholder value with these assets. The main value lies in the Arkansas asset, which we know as the “Horst unit”. We hope to continue to develop this formidable reservoir and also try to increase our ownership in current wells. GOC will be held separately from Dome Energy Inc., since we do not need to consolidate the bank debt as of now. We expect GOC to contribute positively to our EBITDA.”
For further information, please contact:
Paul Morch
Phone: +1 713 385 4104
E-mail: pm@domeenergy.com
This information is the kind of information that Dome Energy AB (publ) is obliged to publicize according to EU Market Abuse Regulations (MAR). The information was publicized, by the above contact person April 27, 2017, 08.30 CET.
About Dome Energy
Dome Energy AB. is an independent Oil & Gas Company publicly traded on the Nasdaq First North exchange in Sweden (Ticker: DOME). Mangold Fondkommission AB, phone: +46 8 503 01 550, is the Company’s Certified Adviser. Headquartered in Houston, Texas, the Company’s focus is on the development and production of existing onshore Oil & Gas reserves in the United States. For more information visit www.domeenergy.com.
Tags: