Pancontinental executes agreement to acquire Bombora By Martin Kovacs, 8 Jun 2017

Pancontinental Oil & Gas has advised that it has signed a binding heads of agreement with Bombora Natural Energy under which it will acquire Bombora.

Pancontinental will acquire all of Bombora's issued capital on the basis of up to 26 Pancontinental shares for each Bombora share under the agreement, subject to the satisfaction of various conditions precedent, including shareholder approval, Pancontinental advised.

Pancontinental stated that the transaction provides its portfolio balance “by adding 'bolt-on' projects with imminent drilling and the potential for near-term gas production in the USA, while advancements are made on the very high-potential African projects”.

“Bombora adds considerable shorter-term activity for Pancontinental’s shareholders, with interests in great opportunities in the Sacramento Gas Basin and the onshore Perth Basin, as well as the potential for a series of additional new projects,” Barry Rushworth, Pancontinental CEO, commented.

“The reformed management team is very well suited to efficiently manage the exciting new USA and Australian assets and to continue to run the existing high-potential African projects. The team is also very well positioned to continue to add new projects to the portfolio.

“This is a transformational transaction for Pancontinental's shareholders, with the potential to deliver much early value going forward, while ensuring shareholders continue to benefit from exposure to our significant African position. Notably, our Namibia PEL 37 project has been significantly derisked and is an asset we believe to be on the cusp of unlocking significant value for our shareholders.”