Tangiers Petroleum has launched a £22.5million takeover bid for rival firm Jacka Resources as it looks to expand its African profile.
The Australian firm has confirmed it has made an off-market bid for Jacka, which has oil and gas interests in Tunisia, Tanzania, Nigeria and Australia.
“This is a compelling offer for Jacka shareholders, and this transaction will provide a strong platform to pursue the company-transforming exploration opportunities within the portfolio of the merged entity, both in terms of balance sheet and board,” said Jacka chairman Scott Spencer.
“The board and management of Jacka are very focused on the opportunity to create significant value through appraisal and development of the Hammamet West oilfield offshore Tunisia.
“With this transaction shareholders will also gain exposure to a second near-term opportunity through Tangiers’ Tarfaya prospect, scheduled to be drilled in 2014 offshore Morocco, which is emerging as a leading frontier oil province in Africa”.
The new group would feature board members from both companies, with around £5million in the bank and a further £13million expected through farm in agreements for their respective licences.
“Jacka’s portfolio provides diversity to Tangiers’ shareholders with exposure to highly prospective exploration drilling as well as appraisal and development activity in a number of countries over the next two years,” said Tangiers chairman Eve Howell.
The deal is expected to be concluded in February next year.
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