Published: 10:00, 22 January 2018 |
Updated: 10:37, 22 January 2018
An oil and gas exploration business has announced plans to sell its Italian drilling sites.
Sound Energy, which has its headquarters in Sevenoaks, has entered a conditional agreement with Saffron Energy, a gas production business.
The deal is subject to Saffron raising enough money to run its new business and gaining its shareholders’ approval.
If all goes ahead, Sound Energy will receive 185.9 million shares in Saffron, which will be renamed Coro Energy plc.
The company will also receive a royalty of 5% on all revenue from any well drilled on a licence known as the “Laura” project.
Sound Energy made a decision to focus on Mediterranean onshore gas in 2011, disposing of its Indonesian assets.
It gained its first gas in Italy in 2013 and bought land for its Badile exploration in the Po Valley in northern Italy.
It gained approval for the exploration in 2016, sending its share price rocketing 470% to a high of 96.3p.
It began drilling last spring but its share price has fallen by about a third after the results of the exploration were reportedly disappointing.
The company will contineu to focus on its explorations in north Africa, having begun exploring onshore gas at Tendera in Morocco in 2015.
Every morning at 10am we play you an hour of tunes from the 90s. We call it, #WeLoveThe90s.
Play 'Say It' with Garry and Laura on kmfm Breakfast and you could win £1,000!
Wake up to kmfm Breakfast with Garry and Laura - it's Kent's alarm call.
Your No1 guide to getting married in Kent. From dresses to discos and venues to veils, we've got everything you could possibly need for your big day
Education, Training & Childcare is a special supplement published by KM Media Group four times a year. Click here for latest e-edition.
A guide for your future. For year 11 students in Kent and Medway. Click here for the e-edition.
Get the latest food and drink news, recipes from some of the nation's top chefs plus updates from Kent's vineyards and breweries.
Search in your local area to find your perfect partner in Kent, with FreshStart Dating!
PLUS, register for free!.
Read our pick of the best holiday destinations. Whether its a weekend break, or something a little bit longer, we have reviewed a wide range of holidays.