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Additional Information
Market: AIM
Sector: Energy
EPIC: NOP
Latest Price: 73.50p  (-0.68% Descending)
52-week High: 140.25p
52-week Low: 61.00p
Market Cap: 68.74M
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Northern Petroleum
www.northpet.com

Northern Petroleum Plc is an oil and gas exploration, development and production company focused on the European Union and nearby areas. The Company is an operator of both onshore and offshore projects including a producing oilfield and boasts a management and technical team of the highest quality.

Full Northern Petroleum profile here
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Northern Petroleum to acquire ATI Oil in all share deal

3rd Apr 2009, 5:23 pm Northern Petroleum to acquire ATI Oil in all share deal

Northern Petroleum (AIM: NOP) announced late on Friday that it had come to an agreement to acquire the remainder of ATI Oil in an all share deal. Northern is offering 1 share for every 8 ATI shares, valuing the company at £11.3 million, or 11.9 pence per share. The offer represents an 8.5% premium based on a Northern Petroleum share price of 95.5 pence.


“Northern believes that it is in the interests of its shareholders to bring Northern and ATI together. This will allow the enlarged group more direct control over its Italian licence interests. ATI's constrained financial position has created difficulties and complications for Northern in progressing the development of its Italian licence interests, including in attracting external partners to participate in these licences,” the company stated.


Northern Petroleum added that it had already received irrevocable commitments representing 50.1% of the existing share capital.


Richard Latham, Chairman of Northern, said the consolidation of ATI Oil would give the company greater flexibility to progress its Italian licences and seek new joint venture partners.


Per Gunnar Loge, Chief Executive of ATI, added that ATI Oil shareholders would benefit from Northern Petroleum’s stronger balance sheet:


“ATI has believed fully in the business potential of the joint assets in Italy, however, it has been apparent for some time that the equity market has become very difficult for small oil exploration companies and that such new equity capital that could be available would be at a large discount to the current share price. In the opinion of the Board of ATI the deal with Northern offers a better opportunity for shareholders to maintain their interest in the profit potential of these assets at less risk and less devaluation from incoming new equity.”

 

Northern Petroleum will be presenting at our One2One Investor Forum at 6pm, April 7 2009 in London.

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