UK-based upstream gas company Sound Energy has signed an agreement to sell its portfolio of Italian interests and permits to Saffron Energy.

The proposed acquisition will be made through Saffron’s purchase of the entire issued share capital of Sound Energy Holdings Italy (SEHIL).

The sale comprises Sound Energy’s Italian oil and gas interests held by SEHIL through its wholly owned subsidiary Apennine Energy (APN).

Through the transaction, Sound Energy expects to combine its Italian oil and gas portfolio with that of Saffron.

Under the deal, the binding agreement is subject to completion of placement by Saffron to raise funds for working capital, as well as the approval of shareholders of Saffron.

“The proposed acquisition will be made through Saffron’s purchase of the entire issued share capital of Sound Energy Holdings Italy (SEHIL).”

In exchange for the acquisition of SEHIL, Saffron is required to issue 185,907,500 new ordinary shares to Sound.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The agreement will also allow Sound to receive the proceeds of any future sale of the land comprising the Badile permit and located in the Piedmont Lombard basin in northern Italy owned by SEHIL.

Additionally, Saffron will award an overriding royalty of 5% to Sound on all revenue accrued from any wells drilled on the exploration licence D.R.74 AP, referred to as ‘Laura’.

Concurrently, Saffron has signed an agreement to acquire Po Valley Energy’s portfolio of Italian interests and permits.

The acquisition will result in Po Valley holding 200 million new ordinary shares in Saffron.