Trowers & Hamlins

Trowers & Hamlins LLP advises Xtract Energy plc on its acquisition of shares in Elko Energy Inc. and £1.2 million placing of new shares.   

Trowers & Hamlins LLP, the City international law firm, has advised AIM listed client Xtract Energy plc (Xtract) in respect of its acquisition of 13.2 per cent. of the issued stock of Elko Energy Inc, (Elko).  (Elko is a Canadian registered oil and gas exploration company which has interests in exploration and production licences in the Danish and Dutch North Sea).  The consideration for the acquisition comprises a cash payment of US$1,342,000 and new Xtract shares on the basis of one new Xtract share for each Elko share.  Following completion, Xtract will hold approximately  50% of the issued capital of Elko.

Trowers has also recently advised Xtract in connection with its £1.2 million placing of new shares.  Under the placing, the placees received warrants to subscribe for one new ordinary share for each placing share at a subscription price of 2.5p per share.  The placing shares were admitted to trading on AIM on 21 December 2009. Smith & Williamson acted as nominated adviser and broker to Xtract.

Richard Hildebrand, partner at Trowers & Hamlins LLP comments:
"We are delighted to have advised Xtract on these two transactions.  The Elko acquisition will enable Xtract to consolidate its substantial shareholding in Elko and maximise its investment.  The placing which was completed in a short timeframe will add to Xtract's working capital."