The proposed all-stock merger between Bahamas Petroleum Company and Columbus Energy Resources was sanctioned by the court on Wednesday, paving way for the merger execution.
Bahamas Petroleum Company, an oil firm with exploration assets in the Bahamas, and as of recently offshore Uruguay, and Trinidad-focused oil and gas production Columbus Energy Resources first announced intention to merge in June, by way of a share for share exchange offer to be made by BPC for the entire issued and to be issued ordinary share capital of Columbus.
In a statement on Wednesday, BPC said that the merger scheme would become effective upon the court order being delivered to the Registrar of Companies, "which is expected to take place on or about 7 August 2020,"
Subject to the Scheme becoming effective, the new BPC ordinary shares under the merger will be issued and allotted to holders of Scheme Shares.
Announcing the merger proposal in June, the companies said the combination would create "a Caribbean and Atlantic margin focused oil and gas 'champion,' With Columbus' onshore Trinidad assets, which includes five producing fields, and the Bahamas Petroleum's "highly-prospective" assets in the Bahamas and Uruguay.
Leo Koot, Executive Chairman of Columbus, said: "I would like to thank our shareholders for their support during the merger process and also thank the Columbus team and the BPC team for all their work in implementing the merger. I look forward to the new, enlarged BPC group progressing and growing our various assets across the Caribbean."
Simon Potter, Chief Executive Officer of Bahamas Petroleum Company plc said: "Completion of the merger is a milestone for BPC as we move forward with our vision to create a business with a range of assets representative of each phase of our industry - a full-cycle exploration and production business.
"I would like to thank our existing shareholders for their support, and at the same time welcome our new shareholders to this expanded company that, in our view, will be much better equipped to thrive in the currently prevailing industry conditions.
"The Board and the entire team at BPC is committed to leveraging operations in our new assets in Trinidad, Suriname, and Uruguay, as well as completing our Perseverance #1 well in The Bahamas so that the newly combined assets deliver exceptional shareholder value."