Bounty Oil & Gas buys PetroQuest Liberia for $3.4M
- Bounty Oil & Gas signed a binding share sale agreement to acquire 100% of PetroQuest Liberia Deep Water.
- The company secured firm commitments to raise approximately $3.6 million through a capital placement.
- The acquisition provides exposure to offshore exploration block LB-32 in the Harper Basin, Liberia.
Bounty Oil & Gas (ASX:BUY) has agreed to acquire PetroQuest Liberia Deep Water and secured $3.6 million in placement commitments.
The deal gives the business access to Block LB-32, a deepwater exploration area covering 2,322km2 in Liberia's Harper Basin.
PetroQuest holds a letter of engagement with the National Oil Company of Liberia to negotiate a production sharing contract.
In a statement, the company said, “Our immediate focus will be on completing due diligence, progressing the production sharing contract pathway and obtaining the approvals required to move the transaction to completion.”
The company stated that the placement was cornerstoned by institutional investors, including Tribeca Investment Partners, L1 Capital Global Opportunities Master Fund, and S3 Consortium.
Management plans to access modern 2D and 3D seismic data to complete due diligence and identify potential drill-ready prospects for farm-out.
Following the announcement the Bounty Oil & Gas share price was unchanged at $0.017.
Block LB-32 contains the Jupiter and Zeus deepwater fan prospects along with several secondary exploration leads.
The offshore target area shares conjugate margin characteristics with major oil discoveries in Guyana and West Africa.
