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Anglo African Oil & Gas secures working capital for six months as it gives consent to share transactions

"The board has considered several offers to purchase the ISA Shares and has, in consenting to the purchase by Forum, given consideration to the long-term interests of the company rather than purely immediate financial gain,” said Sarah Cope.

Anglo African Oil & Gas PLC - Anglo African Oil & Gas secures working capital for six months as it gives consent to share transactions

Anglo African Oil & Gas PLC (LON:AAOG) has given consent to the sale of shares held by Riverfort and YA in transactions worth £420,205.

The transactions will result in the company receiving £361,376 from the pair of investment groups.

AAOG told investors that the proceeds will be applied to its creditors, and, alongside separate £250,000 proceeds received from Zenith Energy the company now expects it will have sufficient working capital for the next six months “absent of any unforeseen legitimate claims”.

In a stock market statement, AAOG noted that the shares are being acquired by Forum Energy Services Limited which has no current intention to dispose of its strategic stake in the company, and, has committed to certain lock-up agreements covering three quarters of the acquired shares.

READ: AAOG agrees option deal terms with Zenith for Tilapia field

Forum has agreed with AAOG that it will have the right to appoint up to three directors to the AAOG board. Phil Beck has agreed to resign his position as non-executive director.

"The board has considered several offers to purchase the ISA Shares and has, in consenting to the purchase by Forum, given consideration to the long-term interests of the company rather than purely immediate financial gain,” said Sarah Cope, AAOG chair.

“The board is confident that, of all the potential partners considered, Forum has the clearest vision and best contacts that will enable it to deliver value for shareholders in the long term."

Forum chief executive Paul Forrest, meanwhile, added: “Forum is pleased to have taken a strategic stake in the company and we are looking forward to working with the board to create shareholder value. 

“Forum has, through its investors and network, access to sources of funding as well as exciting and viable projects in the natural resources sector that could be suitable as acquisition targets for AAOG."

AAOG continues talks with Riverfort over a possible convertible loan facility though the company noted that the immediate need for such a facility is now diminished by today’s new arrangements.

Quick facts: Anglo African Oil & Gas PLC

Price: 0.19 GBX

AIM:AAOG
Market: AIM
Market Cap: £816.89 k
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