Electric Guitar PLC (AIM:ELEG, FRA:M4V), the AIM-listed shell company whose shares are currently suspended from trading, has secured an option to acquire a portfolio of producing oil and gas wells in Oklahoma as it continues its search for a viable business to take over.
The company has had a turbulent few years since it was founded in 2021 as a vehicle to invest in digital marketing businesses. It acquired 3radical, a software platform, in 2024, only to liquidate it within months, leaving Electric Guitar as an empty shell with no trading operations.
The board has since been casting around for a new direction and has now entered into an option agreement giving it the right to acquire a 50% stake in a portfolio of Oklahoma oil and gas assets, known as the Midcon Assets, for a price not expected to exceed $6 million.
The assets are being assembled by Vega Upstream JV, a joint venture between AIM-listed ADM Energy and Covenant Oil Group, which has agreed to buy the full Midcon portfolio for approximately $14.9 million.
Electric Guitar's slice would include a 50% interest in 28 operated wells in Custer County, a portfolio of 58 potential drilling locations, and a share of a natural gas gathering system that pipes around 4.4 million cubic feet of gas per day to market. The wells are currently producing around 533 barrels of oil equivalent per day, with approximately 58% of revenue coming from crude oil and liquids.
If Electric Guitar exercises the option, the deal would constitute a reverse takeover under AIM rules, meaning it would need shareholder approval and the publication of a detailed admission document before the company could resume trading.
The board said it is also still pursuing a separate potential acquisition of Dunbar Energy, a US company pivoting toward supplying power directly from gas wells to data centres, and sees both deals as potentially complementary.
The option expires on 31 July, and Electric Guitar has until then to complete due diligence and decide whether to proceed.
There is no guarantee either deal will go ahead.