Loyz Energy to buy 20% of Norwegian firm

UPSTREAM oil and gas group Loyz Energy yesterday announced it would be acquiring a 20 per cent stake in Norwegian oil and gas exploration firm Fram for US$41.4 million.

The acquisition will allow both firms to share expertise and resources, said Loyz, and should Fram decide to carry out an initial public offering in the future, Loyz, as a shareholder in Fram, will benefit.

This proposed acquisition comes after a participation and exploration agreement (PEA) signed between Loyz Oil, Rex Oil & Gas and Fram in August 2012, to acquire interests in Fram and develop certain oil and gas leases owned by Fram, for the purposes of exploring and producing oil, gas and other hydrocarbons, by all three parties.