Persian Gold to merge with Hydrocarbon and become Clontarf Energy
PERSIAN Gold, an Irish gold and precious metals explorer founded by investor John Teeling, plans to buy all of the outstanding shares of unlisted Hydrocarbon Exploration and rename itself Clontarf Energy as oil production dwindles, AIM-listed Persian said yesterday.
Hydrocarbon Exploration is a private company which owns the US and Bolivian assets of Pan Andean Resources since it was acquired by Petrominerales in April 2010. Mr Teeling, whose operations are based in Clontarf, Dublin, is the biggest shareholder in Persian and the second biggest shareholder in Pan Andean, records show.
Persian will pay Hydrocarbon Exploration shareholders around £4.3m (€5.2m) to buy their shares and merge the companies. The gold explorer plans to sell new shares to raise working capital to pay for the deal.
Both companies have a 30pc stake in an oil exploration concession in Ghana which would bring their stake to 60pc.
"This is a good proposal for both companies and I strongly support it," Mr Teeling said in a statement. "Hydrocarbon gets a stock exchange listing which gives liquidity to its shareholders and Persian Gold expands its oil and gas portfolio. The increased scale will make the combined venture more acceptable to investors."
Persian asked that dealings in its shares be suspended from the AIM pending publication of an admission document. Oil production from both assets is expected to be negligible within two years, Persian said yesterday. There is also a claim against Hydrocarbon for about $4m (€3.3m) from Hunt Oil.