Sound Energy PLC (LON:SOU) told investors it has now has a signed, binding agreement for the sale of its Italian assets to Saffron Energy plc.
The deal remains conditional on Saffron completing a fund raise as well as the approval of Saffron shareholders, and it is expected that all the deal’s conditions will be satisfied by the end of April.
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On completion, Sound will hold 185.9mln Saffron Energy shares though these will be redistributed to Sound’s shareholders on a pro-rata basis (with the record date anticipated as 26 March).
Sound will also receive an overriding royalty over any future revenue from wells on the Laura project, hosted in exploration license D.R.74 AP.
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At the same time, Saffron has a separate agreement with ASX-listed Po Valley which also owns Italian oil and gas assets and is being acquired - meanwhile, Po Valley presently owns a 53% shareholding in Saffron.