Gasol plc ('Gasol') is an emergent vertically integrated oil and gas utility company poised to supply natural gas to gas constrained markets in West Africa and Malta. It has today announced a transformational deal.
Acquisition of a minority stake in the licence containing Foxtrot, Côte d'Ivoire's largest offshore gas field, would be a beachhead for Gasol's West African gas-to-power strategy, with little or no exploration risk and further development fully funded by existing cash flows on a pre-financing basis.
Gasol has agreed to acquire GDF Suez's upstream subsidiary Enerci at a cost of $116.1m. This brings with it a 12% stake in Block CI-27 which, in addition to Foxtrot, contains the Mahi, Manta and Marlin fields. Development of the latter two via a new production platform is fully self-funding on a pre-financing basis from existing Foxtrot and Mahi cash flows.
The acquisition of Enerci is classified as a reverse takeover so the shares are now suspended as shareholders' approval will be sought, but it is expected they will return with a placing to raise new equity.