Coastal Oil and Gas Limited
Acquirer: Global Brands
Type: Sale and growth capital
The Partners of ASA, through Acuity Energy, advised the sellers and long standing clients, Coastal Oil & Gas Limited and UK Methane Limited (the Gas Companies). The transaction saw Gas Exploration Finance Limited (GEF) purchased from its existing owners in consideration for the issue of shares in AIM listed Global Brands and various funding and commercial arrangements put in place.
The Gas Companies have an ownership interest in 17 petroleum exploration development licences in South Wales, Somerset and Kent with the right to explore and drill for shale gas in the licensed areas.
GEF has entered into a framework financing agreement with the Gas Companies to which the Gas Companies have appointed GEF to raise capital for their exploration and development operations. In consideration for raising capital, GEF will receive an economic interest commensurate with the proportion of drilling expenses covered through the funding received from GEF.