Petroleum Africa
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Friday, December 6, 2013
Tangiers Petroleum and Jacka Resources Ltd. entered into a bid implementation agreement (BIA) in respect to an off-market takeover offer to be made by Tangiers for all of the issued ordinary shares in Jacka. The offer ratio is equal to 0.468 Tangiers shares for every Jacka share held, valuing Jacka at approximately $37 million on an undiluted basis.
Upon completion of the transaction, existing Tangiers shareholders and Jacka shareholders will own approximately 53% and 47%, respectively, of the issued ordinary shares of the combined entity (on an undiluted basis).
Combining the two companies will deliver a strong portfolio of highly prospective exploration, appraisal and development assets in Africa, including two high impact wells planned for 2014: the TAO-1 exploration well in the Tarfaya block, Morocco and the drilling and testing of Hammamet West-3 sidetrack 2 in Tunisia. The combined entity will also have exposure to a promising near-term offshore Nigerian development project in Aje (OML 113) where the JV plans to complete the field development plan by early 2014.
Eve Howell, Executive Chairman of Tangiers commented: “This transaction is consistent with the strategy adopted by the board and management of Tangiers over the past year where efforts have been focused on growth in Africa and building a portfolio which balances low risk, moderate reward development and production opportunities with higher risk, large exploration potential. 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.”
Upon completion of the deal, Howell will remain as chairman of Tangiers, with Bob Cassie becoming managing director.
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