O'Sullivan's Bayfield in €55m Trinity merger
A major oil exploration figure has struck a deal to merge with Galway geologist Finian O'Sullivan's Bayfield Energy.
Bruce Dingwall's Trinity group has inked a €55m reverse takeover of Bayfield, founded by ex-Burren Energy boss O'Sullivan.
Dingwall will head up the new entity, Trinity Exploration & Production, as executive chairman, with O'Sullivan taking a seat on the board.
An expected next step will be fundraising of €10m- €20m for new ventures, either through debt or equity.
The all-paper deal means Bayfield will constitute 45 per cent of the new entity with Trinity making up the remaining 55 per cent.
It is likely that key shareholders, such as O'Sullivan and other former Burren Energy investors, will roll their shares over, with no expected sell-out by stakeholders.
Dingwall was a founder of major Scotland-based North Sea explorer Venture Production in the Nineties. Trinity had pre-tax profits of more than €10m in 2011.
A multimillion suit by a former Bayfield director remains an issue. "At this stage it is really for Trinity Exploration to settle out," Darcy Carr said on Friday.
Bayfield had interests in Trinidad, Tobago and South Africa. It had been considering its options following a failed equity fundraising bid earlier this year. Its shares were at 25c before suspension ahead of the takeover, having lost two-thirds of their value since May this year.
Trinity Exploration will be the largest oil and gas explorer in the region with 11 operated fields delivering some 3,800 barrels a day. It hopes to grow that delivery.
Sunday Indo Business