Gasol is an emergent utility company which has as its primary purpose the monetisation of Nigerian and other gas reserves through the supply of natural gas and LNG to power projects and other industrial users in West Africa. It is also part of a consortium formed to supply gas to Malta
Metamorphosis: second deal this quarter
Published: Dec 22 2013
Gasol plc ('Gasol') is an emergent vertically integrated oil and gas utility company poised to supply natural gas to gas constrained markets in West Africa and Malta. It has today announced a transformational deal.
Acquisition of a minority stake in the licence containing Foxtrot, Côte d'Ivoire's largest offshore gas field, would be a beachhead for Gasol's West African gas-to-power strategy, with little or no exploration risk and further development fully funded by existing cash flows on a pre-financing basis.
Gasol has agreed to acquire GDF Suez's upstream subsidiary Enerci at a cost of $116.1m. This brings with it a 12% stake in Block CI-27 which, in addition to Foxtrot, contains the Mahi, Manta and Marlin fields. Development of the latter two via a new production platform is fully self-funding on a pre-financing basis from existing Foxtrot and Mahi cash flows.
The acquisition of Enerci is classified as a reverse takeover so the shares are now suspended as shareholders' approval will be sought, but it is expected they will return with a placing to raise new equity.
A win in Malta
Published: Oct 14 2013
Gasol is an emergent utility company which has as its primary purpose the monetisation of Nigerian and other gas reserves through the supply of natural gas and LNG to power projects and other industrial users in West Africa. It is now also part of a consortium formed to supply gas to Malta.
Currently capitalised at only £6.2m, the just announced successful consortium bid for the supply of gas to Malta is highly significant for the company's future.
Gasol's West African ambitions remain very promising, but Malta looks a more immediate route to the generation of revenues and positive cash flow until the West African Gas Pipeline begins to fill its capacity.
Gasol has forged a niche in the market as a developer of floating LNG Import Projects that are now being implemented around the world: they are quicker to implement and less capital intensive than land based onshore regasification. Malta and West Africa may just be the start.