VANE Inks Conditional SPA to Acquire Shale Licences in Germany

VANE Minerals, explorer and developer of copper and uranium projects in North America, announced its intention to enter the unconventional oil and gas arena in Western Europe.

VANE has inked conditional sale and purchase agreement to acquire the entire issued share capital of a company that is in the process of renewing two hydrocarbon exploration licences in Germany, covering an area of approximately 635,000 acres. 

“We have been working closely with unconventional oil and gas specialists whom we are intending to bring on to the team and hope to be able to announce progress on this soon,” said Matthew Idiens, CEO of VANE, in a note released on Monday. 

The sale and purchase agreement is conditional upon the renewal of the licences by the licencing authorities, which is anticipated to be in Q4 2013. The German federal election will be held on 22 September 2013.

“As with all European shale gas projects, there is an element of risk, particularly from the environmental lobby at this stage of the development of a new industry, but we feel the potential returns and timing of this opportunity represent an excellent risk reward ratio and it has the potential to add significant value to the company,” commented Idiens. 

VANE’s total investment would be of 400,000 euros.