What a difference a week makes.
Heritage Oil interim management statement, Tuesday, November 17:
Discussions with Genel are continuing with the terms of the merger nearing formal agreement. Both sides remain committed to completing the proposed transaction. It is hoped that the implementation agreement can be signed and the prospectus published before the end of the year.
Heritage RNS, Monday, November 23:
[D]iscussions with Genel Energy International Limited (“Genel”) in relation to the proposed acquisition of Genel have been terminated.
And the market reaction? Heritage shares gained 3.5 per cent at the open in London on Monday morning.
And that’s partly because Heritage have got a good price for the Ugandan assets, which they have agreed to sell to Eni of Italy. That said, Heritage will need a large chunk of the sale proceeds to develop their prize asset in Kurdistan.
Related links:
False news shock – Heritage Oil edition – FT Alphaville
Heritage Oil scoops Tullow with Eni move – FT