MedOil Plc
7�Jan�2005
MedOil strikes gold on AIM
The Deal
An oil and gas exploration company that focuses on petroliferous basins around the Mediterranean and North Africa has raised more than �1 million through an AIM flotation.
MedOil, which has been valued at �2.7 million following the move, will use the proceeds to fund new exploration projects using modern seismic and drilling technology. The company has already applied for three permits in the Central Mediterranean region.
MedOil's directors were also hoping that the admission would raise the profile of the company to help it develop into a successful natural resources exploration and development business.
The Players
MedOil's executive director, David Thomas, said: "The management team brings with it a wealth of experience on both onshore and offshore oil and gas exploration and production projects, with each director having worked in major energy companies during their long careers.
"They have an average of 30 years' experience each in the industry," he added. "However, it is their history of wealth creation that is the key to the MedOil business model where they understand the importance of combining geoscience and engineering principles to create profitable E&P companies."
The Advisers
MedOil appointed Beaumont Cornish as its nominated adviser and broker with Gibbons Mannington as its reporting accountant.
Gibbons Mannington's team was led by Nicky Jones, who explained that the firm was asked to act on the deal because it had worked with David Thomas for more than 10 years.
"Our work included the preparation of the financial information included in the admission document, reviewing the working capital forecasts and financial reporting procedures required by the AIM rules, company legislation and POS Regulations.
"With the Christmas break there was a tight timetable which was met as a result of close cooperation and communication between all parties involved in the transaction," she added.
MedOil received legal advice on the AIM process by Kerman & Co, and were introduced by one of MedOil's investors who had worked with the firm on an AIM float last year.
Kerman's team was led by Richard Stanton-Reid, who said the flotation went smoothly for MedOil, which has a number of very interesting oil prospects under consideration in several countries in the Mediterranean region.
"This is our first project with the principal directors and shareholders, but it looks as if this is the start of a friendly and productive long-term relationship," he added. "The flotation was very well received by the market, the MedOil team and the prospectus were favourably commented upon, and all bodes well for MedOil's future."
Background
MedOil was established to buy high-quality oil and gas assets with a focus on established petroliferous basins in the Mediterranean and North African regions. Countries of potential interest for the company include Morocco, Algeria, Tunisia, Libya, Egypt, Malta, Italy, Albania and the Levant.
Source: M&A February 2005 issue
Download Free Adobe PDF Reader
_____