Zoltav to buy Royal Atlantic Energy

16th Dec 2013 09:51

Oil and gas company Zoltav has signed a sale and purchase agreement with Bandbear to buy Royal Atlantic Energy.Royal Atlantic owns the Bortovoy Licence, which contains number of gas fields within a 3,215 square-kilometre area, a processing plant and significant exploration prospectivity.The licence, located in the Saratov Oblast of the Russian Federation, had proven and probable reserves of 22.4bn cubic metres of gas and 12.4m barrels of oil and condensate at May 1st 2012 and has produced 474.7m cubic metres of gas and 348,600 barrels of condensate and oil in 2012.Zoltav said it believes there is "considerable upside from a large number of prospects on the licence and scope for increased production through the construction of additional facilities".The total consideration for the proposed acquisition is $180m to be paid through the issue of shares, bank debt and cash.RD