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Saffron to acquire Sound Energy and Po Valley’s assets in Italy

EBR Staff Writer Published 06 October 2017

Saffron Energy is set to acquire Sound Energy and Po Valley Energy's Italian interests and permits.

Non-binding conditional heads of terms have been agreed to this effect by all the sides.

Under the proposed deal, Saffron will acquire Sound’s subsidiary Appenine Energy and its holding company Sound Energy Holdings, as well as Po Valley's subsidiary Po Valley Operations.

The acquisition will add various assets, including Selva onshore gas field, Teodorico offshore Adriatic gasfield development, Torre del Morro and Santa Maria Gorretti and Dalla gas exploration licences and two smaller gas production fields to Saffron's portfolio.

Saffron will combine its Italian oil and gas interests with Sound and Po Valley's assets to create a new company, Coro Energy.

Sound Energy's CEO James Parsons will serve as non-executive chairman for Coro, while Po Valley's CEO Sara Edmonson will act as CEO for the new company.

Parsons said: "This transaction will provide an elegant exit from our Italian activities thereby delivering strategic focus for our province opening activities in Morocco and enabling Sound Energy shareholders the opportunity to continue their participation in an early stage consolidated but growth focused Italian E&P company.”

Saffron CEO Michael Masterman said:This transaction pools Saffron, Po Valley and Sound Italy's natural gas fields and gas and oil exploration licences with a very a talented team of individuals at both Board and management level.”

Saffron Energy was formed in November 2016 to acquire Northsun Italia, which is engaged in the exploration and acquisition of liquid and gaseous hydrocarbons in the Lombardy and Emilia Romagna regions of the Po-Veneto plain.