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LN Energy has agreed to acquire the entire outstanding issued share capital of LNEnergy, the Italian company holding a 90% interest in the Colle Santo gas field in Italy's Abruzzo region.
LN Energy currently manages and owns a 20% interest in LNEnergy, which is seeking regulatory approval for the field's development.
The company has entered into a binding purchase and sale agreement (PSA), according to which it will pay $100,000 upon completion of the agreement.
The consideration also involves $400,000 once the Colle Santo development plan is approved by the VIA Commission of the Ministry of the Environment of Italy, $10.5m within 60 days of the formal concession decree award, and a 4% net profits interest from LNEnergy's production revenue.
This PSA supersedes a previously announced agreement by LN Energy to acquire LNEnergy.
As part of the Colle Santo development application process, the VIA Commission conducted a site visit at Colle Santo.
Reabold Resources holds a 29.2% equity interest in LNEnergy.
Reabold co-CEO Stephen Williams said: "We are very pleased to have simplified the structure of LNEnergy as it relates to its interest in Colle Santo. This project holds significant gas reserves, at a time when there is an increased focus on the energy transition and energy security in Europe.
"LNG is a transition fuel which has a central role to play in Italy's energy transition plan, and the strong environmental credentials of the Colle Santo project underline its potential to directly enhance the energy transition, and energy security, in the near term.
"We remain encouraged by the regulatory process to date and we look forward to receiving the VIA Commission approval for the development of the Colle Santo project, the final milestone ahead of a full production concession being granted."
LN Energy will provide additional information to the VIA Commission and expects a decision soon thereafter.
Following the submission of the environmental impact study for the new small-scale liquefied natural gas development plan at the Colle Santo gas field, a site visit was conducted with the Ministry of Environment and Energy Security.
"LN Energy to acquire LNEnergy to advance Colle Santo gas field development" was originally created and published by Offshore Technology, a GlobalData owned brand.
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