Philex Petroleum Corp. (Philex Petroleum) will acquire the minority interests in Forum Energy Plc not held by the company or its shareholders in restricted jurisdictions for a cash consideration of 20 pence per ordinary share.
In a disclosure to the Philippine Stock Exchange (PSE), Philex said it made the offer after Forum’s announcement that it would seek shareholder approval at its annual general meeting in June of the cancellation of admission to trading of Forum’s ordinary shares.
The Board of Forum Energy has announced the cancellation to trading of the admission of its ordinary shares of 10 pence each on AIM (Alternative Investment Market). This means there would no longer be a market mechanism enabling shareholders to trade ordinary shares on AIM or any recognized market or trading exchange.
It also announced the proposed re-registration of the company as a private limited company and the proposed replacement of the company’s existing articles of association.
“The offer is therefore being made to enable Forum Shareholders to trade out of their ordinary shares prior to the proposed cancellation,” the company said.
The offer opened on Monday and, unless extended by means of an announcement through a Regulatory Information Service, will close at 1 p.m. (UK time) on June 22.
On March 2, Forum Energy announced that its principal asset, a 70 percent interest in Service Contract 72 was put into force majeure by the Department of Energy (DOE).
SC 72, an oil and gas contract to develop a gas discovery, falls within the territorial disputed area in the West Philippine Sea, which is the subject of a United Nations (UN) arbitration process between the Philippines and China.
In 2006, results from a 3D seismic survey over this contract area indicated a mean volume of 3.4 trillion cubic feet of gas-in-place with significant upside potential.
Forum Energy said as a result of the force majeure, all exploration work at SC72 has been suspended and its second sub-phase has been put on hold until further notice.
“There can be no guarantee as to if and when the force majeure on SC72 will be lifted. If it is lifted, there can be no guarantee that the DOE will grant the necessary approvals to proceed with the work required to satisfy the company’s obligations under the second sub-phase of SC72,” said Forum.