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European law firm Fieldfisher has advised President Energy PLC ("President") on a US$17.5 million acquisition of LCH S.A, a Paraguayan company ("LCH").
LCH holds a 5% interest in an oil and gas concession known as the Pirity Block and a potential further right to a 5% interest in another concession known as the Demattei Block, both of which blocks are located in the occidental region of Paraguay and in which President already holds significant interests.
The consideration for the acquisition comprised US$6million worth of ordinary shares in President, US$250,000 in cash and US$2.5 million worth of warrants to subscribe for new shares in President. In addition, certain deferred and contingent consideration of US$5 million will become due in the event of a commercial discovery taking place on the Pirity Block and/or US$4 million upon the Demattei 5% interest being transferred to LCH.
President is an AIM quoted oil and gas exploration and production company with a focus on South America, with significant exploration and development opportunities in Paraguay and production assets in Argentina. It also has producing assets in Louisiana, United States and further exploration assets in Australia. President's strategy is to principally target reserve and production growth in South America.
The Fieldfisher team was led by Equity Capital Markets Partner Dominic Gurney-Champion, assisted by Corporate Senior Associate, Nick Heap. Additional advice was also given by Tony Lewis and Alex Underwood from the Dispute Resolution team on certain specific aspects of the transaction.