Coastal Africa Group (AIM:CAGL) began trading on AIM today (10 June), launching as a cash-backed investing company that intends to use net proceeds from a subscription and convertible loan notes to pursue minority, non-controlling interests and to part-fund a planned acquisition in the West African oil and gas sector.
The company currently has no trading businesses or revenue and says it will seek to complete an initial acquisition within 18 months while using proceeds to acquire minority investments, pay transactional due diligence costs and meet minor corporate expenses.
"Today marks an important milestone for Coastal as the Company commences trading on AIM and begins executing its strategy to identify and develop compelling energy opportunities across West Africa," said Peter Kimpel, Non-Executive Chairman.
Coastal has entered an exclusivity agreement with BP Oil on offtake and marketing.
It also highlighted shallow-water opportunities in Nigeria and Angola supported by recent fiscal and regulatory change, and cites a prior team track record including the January 2014 sale of Coastal Energy for approximately C$2.3 billion, an outcome the company says demonstrates its model.
