Oil and gas firm Wessex Exploration is closing in on a deal for a Far East offshore field as it looks to expand its global portfolio – if it can see off a boardroom revolt.
The London-listed firm already owns assets in South America, East Africa and Western Sahara, but is looking to move into the lucrative Asian market.
The purchase would be funded through the issue of shares, which would also cover contractual drilling costs, the company said as it announced it was in “advanced discussions” over the asset.
But it warned the deal was dependent on the outcome of the company’s general meeting next month.
It will discuss the resolutions regarding changes to the company’s board proposed by a minority stakeholder Milroy Capital and the firm’s former boss Frederik Dekker.
The shareholders will need to oppose all resolutions for the purchase to go ahead.
“Now that advanced discussions are underway, the company expects to sign heads of terms shortly and thereafter move to a final acquisition agreement as soon as practicable, conditional on rejection of all seven resolutions at the forthcoming general meeting,” said Wessex Exploration’s chairman, Malcolm Butler.
“If this acquisition is concluded, your company will have additional, highly experienced directors with successful track records and a rejuvenated asset base to allow it to grow and prosper.”