Oil and gas firm Wessex Exploration has exchanged Heads of Agreement for the acquisition of Hague and London Oil (Halo).
It’s a $1million step in its bid to move into the Far East.
The “potentially transformational” transaction will allow the company to benefit from Halo’s “highly prospective” SC54A licence in the Philippines.
Halo is expected to hold $1million in cash to cover its contractual drilling obligation on SC54A in return for a 15% interest in the asset, according to the agreement.
The company’s principal Andrew Cochran is set to join the Wessex board as interim chief executive and chairman. He will replace current chairman and interim technical director Malcolm Butler who will become a non-executive director.
The final agreement is subject to shareholder approval.