UK-listed small-cap exploration firm Xplorer has today signed a memorandum of understanding for the acquisition of a working interest in five shallow offshore exploration permits off the coast of Morocco.
Xplorer has negotiated the acquisition from Teredo International of Teredo Morocco, which holds a 36.75% working interest in the Boujdour permit, in return for Teredo being issued 56% of the post-proposed acquisition but pre-fundraising enlarged share capital of the company.
Boujdour consists of five shallow offshore exploration permits off the coast of Morocco. Boujdour is prospective for both oil and gas, and is estimated to have mean net un-risked prospective resources of 463.4 MMboe, of which 31.07 MMboe are categorized P90 and 182.65 MMboe P50, according to Xplorer based on a report by Sproule, a Canadian based oil and gas consultancy, dated 31 March 2014.
The proposed acquisition, if exchanged and completed, would constitute a reverse takeover (RTO) under the listing rules.
Xplorer has also appointed Smaller Company Capital as joint broker. Through SCC and its own efforts, Xplorer intends to raise pre-RTO funding of up to £300,000 through the issue of convertible loan notes to assist in progressing the proposed acquisition.
It is anticipated under the MoU that a further fundraising will be undertaken concurrent with the proposed acquisition.