Beacon Energy (AIM:BCE), the London-listed gas developer focused on the Colle Santo project in Italy, said the 6 October long stop date for its Second Acquisition of a further indirect interest in LNEnergy has passed without an extension agreed with Reabold Resources.
The Share Purchase Agreement remains in full force and effect, and the lapsed deadline simply gives either party the option to walk away, which neither Beacon nor Reabold has exercised.
Beacon completed the First Acquisition on 6 March, taking an indirect interest of approximately 24% in LNEnergy; the Second Acquisition would take that stake to approximately 48%, equivalent to roughly 43.2% in the Colle Santo asset itself.
Completion of the Second Acquisition is conditional on the award of the Production Concession for Colle Santo to LNEnergy Srl, a 90%-owned subsidiary of LNEnergy.
Should the deal fail to complete, Beacon and Reabold would each retain their approximate 24% indirect interests in LNEnergy and fund costs pro rata, no further consideration shares would go to Reabold, the second tranche of cash consideration of £153,200 would not be paid, and Reabold's earn-out would be reduced proportionately.
Chief executive Stewart MacDonald said the company's focus remains on delivering the Colle Santo project, adding that "LNEnergy continues to progress the Colle Santo project with well testing operations anticipated to commence in the coming weeks."
That testing programme covers the MP-1 and MP-2 wells, which flowed gas to surface during 2007 and 2008 appraisal work, ahead of a five-day production test expected around the end of October.