Anglo African Oil & Gas PLC told investors it will go ahead with talks to secure new funds from current co-investor Riverfort Global Capital.
In a statement, AAOG said that its board unanimously chose Riverfort following a competitive process in which three potential investors provided their best and final offers to the company.
It will now look to finalise a definitive equity sharing agreement with Riverfort and Yorkville.
The new cash is earmarked for the re-entry into the TLP-103C well with a view to producing from the Djeno reservoir.
AAOG also highlighted that the major investor who took 49.28mln shares in a recent placing has reconfirmed its commitment to the investment.
The company also provided detailed background regarding the previously proposed asset acquisition and reverse takeover, which was ultimately decided against by the AAOG board as the company chose to focus on its existing asset.
It noted that some £580,000 of AAOG’s money had been spent on the process and documentation, mostly related to the reverse takeover aspect of the deal.
Subsequently, AOOG directors David Sefton and James Berwick separately pursued a deal for the assets via a special purpose vehicle, Anglo Tunisian Oil & Gas Ltd (ATOG), funded by the European High Growth Opportunities Securitization Fund (EHGOS).
AAOG noted that EHGOS was one of the possible investors to submit a proposal in its funding process.
