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Anglo African Oil & Gas PLC (LON:AAOG) was the biggest riser on New Year’s Eve after receiving a proposal from Jub Capital.

Jub has offered to acquire the shares currently held by RiverFort and its associates at a price of 1p per share and return “a substantial part” of the proceeds to the company, while also subscribing for £300,000-worth of new shares at the same price, with these shares having a number of warrants attached exercisable within the next two years at 1.5p.

Alex MacDonald and Matt Thompson would be appointed to the board, with Thompson’s Oxford Energy writing a letter of support to offer a US$5mln loan to the company.

After AAOG said last week it said it planned to become cash shell after agreeing to sell the bulk of its Congolese interests to Zenith Energy and obtain financing from RiverFort Capital, Jub’s proposal also called for the withdrawal of both these agreements.

The AAOG board said it will consider the proposal and continue to negotiate terms with RiverFort over financing, noting that Jub’s proposal “does not articulate on what terms or what conditions the loan from Oxford Energy shall be made available”, nor does it outline how the new management team anticipate unlocking value from the Tilapia field for shareholders, as well as a number of conditions that need confirming before their support could be offered. 

Anglo shares jumped 78% to 0.8p just after noon on Tuesday

Earlier last week, the company confirmed it was examining financing options, including the sale of a controlling interest in Anglo African Oil & Gas Congo SAU, following “continued non-payment” by Société Nationale des Pétroles du Congo (SNPC), the national oil company of the Republic of Congo.