Once the acquisition is completed, which is expected by the end of February 2011, EuroGas will own 100 percent of the common stock of McCallan.
McCallan's main assets are its wholly-owned subsidiaries EuroGas Polska, a Polish company, and Vienna, Austria-based EuroGas (EuroGas Austria) McCallan.
EuroGas Polska owns a 24 percent interest in a large joint operating agreement (JOA) operated by Poland's national oil & gas concern Polish Oil & Gas (PGNiG), which itself owns 51 percent in the JOA.
The balance of 25 percent is held by Aurelian Oil & Gas, a UK public company listed on the London Stock Exchange. The JOA comprises approximately 3,200 square kilometers with 10 oil and gas concessions in the Polish Carpathian Mountains originally owned by EuroGas Polska and farmed out to PGNIG in the fall of 2006.
PGNiG and the Polish Ministry of Environment and Natural Resources have publicly stated in the Annual Reports on Poland's hydrocarbon reserves the existence of a potential 300,000,000 Barrels of Oil in Place in the southern portion of the concession area.
EuroGas Austria owns a 33 percent shareholding in Rozmin, a Slovakian mining company. Together with the company's 57 percent shareholding in Rozmin, which was purchased by the company from Belmont Resources on March 27, 2001, EuroGas Austria and the company together will own an undivided 90 percent shareholding interest in Rozmin subject to a final payment by the company to Belmont.
The remaining 10 percent interest in Rozmin is owned by Heinz Schernikau, the owner of a Berlin-based large German coal-trading company. EuroGas Austria also owns 50 percent of OOO EuroGas Ukraine, a Ukrainian company registered in Kiev Ukraine which explores for coal bed methane and unconventional gas (including shale gas) in Eastern Ukraine.
Will the acquisition benefit the firm?
Have your say and discuss with your peers on the InfoGrok community.
Participate by posting your comments now.