Background
-
An exploration company that is currently developing oil and gas deposits.
-
A Product sharing contract is in place with the State agency for production of oil and gas, effective from 05/2007 for 25 years.
-
Geological Analysis completed, 2D Seismic mapping and environmental studies in progress.
Key Investment Considerations
-
In 2007 and 2008 RPS Energy plc undertook a formal extensive independent technical review, inline with AIM rules, of the oil reserves where the company holds the exploration and production contract.
-
This review showed that in excess of 350million barrels were recoverable.
-
There is no allowance made for Gas where there are 20billion recoverable cubic metres.
-
Commercial drilling to commence in 2010.
-
Agreed takeover of company by an AIM listed group in May 2010.
-
Estimated flow rate on initial drilling program is 2,000 barrels per day.
Financial Value
-
Option to purchase 3,000,000 shares at US$2.5 per share.
-
Share swop at US$14 minimum value per share into listed company.
-
Shares are fully tradable.
-
Increase in share value after seismic review and drilling commences.
Transaction Summary
-
Investment for share purchase US$7,500,000
-
Asset value, after share swap, to AIM listed company US$42,000,000
|