News

February 26, 2010

San Leon Agrees Terms To Buy Island Oil & Gas For £13.74 Million

It’s been a while coming – four months in fact since they first mooted a merger - but San Leon Energy and Island Oil & Gas have now agreed terms that will see Ireland’s San Leon acquire its cash-strapped compatriot in an all paper deal worth £13.74 million. The Island Board of Directors has recommended the deal to shareholders, who will be issued with one new San Leon share for every 2.3 shares they hold: this represents a premium of 65 per cent to Island’s latest share price of 6.125 per cent.

Island’s chairman Bryan Benitz said this was the best way to realise value from the company’s collection of E&P assets in Ireland, Europe and North Africa.  "Unlocking the full potential value of Island's diverse and attractive portfolio of assets is more likely to be realised as a result of this acquisition,” said Benitz.
Certainly on a stand-alone basis, Island Oil & Gas was going nowhere fast. 

This was disappointing for shareholders, who had seen the AIM-quoted...