Small oil and gas explorer Aminex has agreed to acquire recent start-up Canyon Oil & Gas in an all-share transaction that will see the latter’s two founders take over the management of the combined entity.
Canyon’s assets comprise a producing well in Moldova’s Valeni Field and cash balances, which are currently worth around just US$2m. While Canyon has an option to participate in the further development of Valeni, the enlarged company intends to focus on its potentially big prospects off East Africa.
Canyon’s founders Jay Bhattacherjee and Philip Thompson, who currently own about 90% of the company’s shares, will become chief executive officer and chief operating officer of Aminex respectively with immediate effect. Brian Hall, the current acting executive chairman of Aminex, will resume his former position of non-executive chairman.
The transaction, which will be settled though the issue of 80 million new Aminex shares, is subject to the completion of satisfactory mutual due diligence and any necessary regulatory approvals.