European law firm Fieldfisher has advised Northern Petroleum plc, the AIM-listed exploration and production company, on its disposal of part interests in its assets and an equity raising.
The company has agreed to dispose of part of its interests in its assets in Italy, Canada and Australia to High Power Petroleum for $2.5m and $0.25m worth of well stimulation services. Northern Petroleum will divest a 25% interest in its Canadian licenses, a 10% interest in its southern Adriatic permits, and a 25% interest in its licence in Otway Basin, South Australia. All transfers are subject to obtaining their respective regulatory approvals.
The sale and purchase agreement contains options for High Power Petroleum to acquire further interests in each asset in exchange for carry obligations towards future work programmes.
The Fieldfisher team, which was led by Stuart Carter, partner and head of Oil & Gas, also advised Northern Petroleum on its entry into an area of mutual interest agreement with High Power Petroleum, in respect of Alberta and Saskatchewan, Canada.
High Power Petroleum, along with Cavendish Asset Management and City Financial, together with one other institution, have conditionally agreed to subscribe for shares raising proceeds of up to £5.1m at a price of 3.5 pence per share. High Power Petroleum will obtain a shareholding of 29.9% in Northern Petroleum. The total funds raised amount to approximately $9.7m and will be used to complete the winter work programme in Canada, to increase production in Canada and to progress the permits in Italy in order to drill the Giove appraisal well and acquire 3D seismic.
Stuart Carter (Picture) was supported by Brad Isaac, fellow corporate partner, and associates Naomi Nguyen and Owain Davies.
Law Firms: Fieldfisher;
Clients: Northern Petroleum Plc;