Saffron Energy has suspended training in a reverse takeover bid.
The firm this morning revealed plans to acquire both Sound Energy’s and Po Valley Energy’s portfolio of Italian interests and permits.
The proposed acquisition by Saffron of Sound Energy’s and Po Valleys Italian natural gas and oil assets as contemplated in the transaction adds significant larger assets to the Saffron portfolio including the Selva onshore gas field (2C 17bcf), the Teodorico offshore Adriatic gasfield (47bcf) development and the large Torre del Morro and Santa Maria Gorretti and Dalla gas exploration licences plus two smaller gas production fields.
The new company would be re-named Coro Energy with a new complete leadership reshuffle. James Parsons, Sound Energy’s chief executive officer, would be appointed as a non-executive chairman. Sara Edmonson, Po Valley’s chief executive and currently a non-executive director of Saffron Energy, would assume the role of chief executive officer. Fiona MacAulay, Echo Energy’s chief executive officer would be appointed as a non-executive director.
Under the Proposed Transaction, Saffron Energy would also issue each of James Parsons and Sara Edmonson, warrants to subscribe for 10 million new Ordinary Shares in Saffron Energy at a price of 4.38p per Saffron Energy share.
Saffron’s chief executive Michael Masterman said: “From day one, this transaction will transform Saffron into a materially larger funded natural gas and oil company with critical mass through an exceptional balanced portfolio of high quality assets. Larger scale gas development assets including onshore Selva and offshore Adriatic Teodorio and exploration assets including Torre del Morro, Maria Goretti, and Dalla are added to the existing gas production portfolio.
“This transaction pools Saffron, Po Valley and Sound Italy’s natural gas fields and gas and oil exploration licences with a very a talented team of individuals at both Board and management level. The proposed addition of James Parson (CEO of Sound Energy Plc) as Chairman and Fiona MacAulay (former COO Rockhopper) to Board will greatly enhance the Company’s financial and technical depth.
“The newly enlarged Saffron will be well equipped to quickly deliver on its growth ambitions and I am confident that they will result in significant value accretion to our Saffron shareholders.”
Saffron Energy is a natural gas producer with interests in Northern Italy. Its portfolio includes two producing gas fields; Sillaro (100%) and Bezzecca (90%) and an application for a near development gas field called Sant’Alberto. All of Saffron Energy’s assets are located between Milan and Bologna.