Valeura Energy Inc (LON:VLU), an upstream oil and gas company with assets in the Thrace Basin of Turkey, announced today that it has agreed with TBNG Limited to amend the long stop date for the completion of the previously announced sale of its shallow conventional gas business.
The parties have made progress on satisfying the closing conditions for the Sale Transaction having obtained one of two key government consents, with only one approval remaining outstanding. Valeura and the Buyer have agreed to revise the Outside Date from April 19, 2021 to July 30, 2021 to continue the approval process. Both parties remain committed to the transaction.
No other terms of the Sale Transaction have been revised. Upon closing, Valeura Energy will be paid a headline cash consideration of US$15.5 million, subject to normal closing adjustments and based on an economic effective date of July 1, 2020. Additionally, Valeura will be entitled to royalty payments over a five-year period, with a minimum royalty payment of US$1.0 million up to a maximum of US$2.5 million.