News blog
TXO
- BY: Andrew Hore |
- POSTED: 17/01/2012 |
Oil and gas investor TXO has provided a £50,000 convertible loan facility to East African Oil Company (EAO), where TXO chairman Tim Baldwin is a director and shareholder.
EAO has yet to secure any assets since it was formed in 2005 but it has identified potential assets within the East African Rift System in Uganda, Kenya, Zambia and Tanzania. EAO has spent more than $700,000 on exploration.
The loan will cover early stage expenses. The loan lasts 12 months and can be converted at 2.74p a share. Full conversion would give TXO 67% of EAO’s share capital. The interest rate is 10%.
Existing shareholders can participate on the same terms as TXO, while Empire Energy Corporation has the right to invest £400,000. If these things happen then TXO will own 10.1% and Empire will own 74.9%. Existing shareholders will own the rest.
TXO has a $1.5m convertible loan note in Empire which gives it a call option to acquire 19.9% of the company.
Empire has oil and gas interests in Tasmania and is considering diversification in to the medical waste sector, where it has identified a potential acquisition.
Empire also has exclusive marketing and development rights in North, South and Central America for a new gas to liquids (GTL) technology. Empire has the right to retain a 51% stake in the technology itself. Empire claims the GTL technology is cheaper than the standard Fischer Tropsch process.
Empire is also looking for an AIM shell so that it can reverse its FASER (Force Amplification by Stimulated Electron Resonance) technology into it. FASER has many uses including as a more efficient power supply for GTL and for medical treatments.
Initial orders have been accepted for first generation research units. They will be made in a facility in Missouri that will also be used to make the GTL technology and mobile medical waste and recycling equipment.
At 0.65p a share, TXO is valued at £2.8m.
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