Leading global law firm Mayer Brown has advised Canaccord Genuity Limited in connection with its role as nominated adviser and broker to Eland Oil & Gas PLC as the company joined AIM in the largest flotation of an oil and gas company on the market (by monies raised) in the last five years.
A placing of new shares in Eland generated gross proceeds of £118m to partly fund Eland’s Nigerian joint venture company in connection with its acquisition of a 45 per cent. interest in the OML 40 licence in Nigeria, with the remainder of the proceeds to be used for working capital. The OML 40 licence covers 500 square kilometres and is located onshore in the Niger Delta. In the next six months, Eland is targeting production from existing wells at Opuama that will be restarted at an expected initial gross rate of at least 2,500 barrels of oil per day.
The team was led by Corporate & Securities partners Robert Hamill and Kate Ball-Dodd, assisted by associates Simon Allison and Frances Hull.
Robert Hamill, Corporate & Securities partner, said: “This is the largest flotation of an oil and gas company on AIM in the last five years and is a sign of how regulatory change in Nigeria is affecting the oil industry as the government looks to boost local participation. It’s been a highly complex process but we are delighted to have advised Canaccord Genuity on such an important mandate.”
Eland was advised as to English law by Stephenson Harwood LLP (led by Tony Edwards and Jeremy Sheldon).
