Worthington to make oil and gas investment

Worthington

Worthington (LSE: WRN), a British investment company, has reached an agreement to invest £12.5 million ($20 million) in CPS Energy Resources Plc, an oil and gas exploration company focused on Africa and working in partnership with Oando Plc.

Currently, the principal asset of CPS is an 80.75% interest in oil and gas Block OPL 236 which, at over 1,600 square kilometers, is one of the largest concessions ever granted in Nigeria. The block is onshore within the Niger Delta, and is surrounded on each side by proven oil and gas fields, including the Shell Imo River fields, which are Nigeria's largest onshore fields with oil production rates of approximately 25,000 barrels a day.

Under the terms of the transaction, Worthington will subscribe for £12.5 million of new CPS ordinary shares at a price that equates to 27.5% of the agreed likely stock market value of CPS (i.e., a discount of 72.5%) when, as expected, it lists in 2015.

 

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