Petromanas Energy Inc., Calgary, will acquire Gallic Energy Ltd. for about $10 million with closing expected in the fourth quarter of 2012.
Petromanas said it has always planned to diversify and complement its Albanian exploration portfolio with other European assets. The combined exploration assets are focused on proven petroleum producing basins and offer exposure to a variety of play and commodity types while diversifying risk across the portfolio.
Petromanas’s subsurface expertise now being applied in Albania is a good fit for Gallic’s naturally fractured carbonate assets in France’s Aquitaine basin, Petromanas said. In addition, fiscal terms, regional commodity prices, and infrastructure access in France are very attractive for conventional assets.
Gallic’s board unanimously recommended the transaction other than one Gallic director who recused himself from the process of considering the proposed transaction. Gallic will hold a shareholders meeting around Nov. 30.
Gallic has assets in France and Australia. Current operations are focused on France and in particular on the Aquitaine basin, where Gallic holds a 100% working interest in 320,000 net acres of exploration lands. Gallic also holds acreage in the prospective Canning basin in Australia.