Admission to AIM and First Day of Dealings
Coastal Africa Group Limited has successfully admitted its ordinary shares to trading on the AIM market, raising approximately £17.36 million through a share subscription at 161 pence per share. Additionally, BP Oil International Limited has subscribed for £10 million in convertible loan notes. The company, an investing entity focused on West African oil and gas, energy infrastructure, and services, now has 135,783,627 ordinary shares in issue, resulting in a market capitalization of approximately £218.66 million. Coastal Africa Group intends to pursue an acquisition within 18 months, initially focusing on minority interests in West African oil and gas assets, and has entered into an exclusivity agreement with BP Oil for crude oil and condensate offtake and marketing.
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A copy of the Admission Document is available for viewing on Coastal Africa Group Limited's corporate website at https://coastalafrica.com, subject to certain access restrictions.
COASTAL AFRICA GROUP LIMITED
Admission to AIM and First Day of Dealings
Coastal Africa Group Limited ("Coastal" or the "Company") (AIM: CAGL), an AIM-quoted investing company focused on acquiring and investing in the oil and gas sector, energy infrastructure, energy services and energy assets across West Africa, is pleased to announce the admission of its ordinary shares of no par value each in the Company ("Ordinary Shares") to trading on the AIM market of the London Stock Exchange ("Admission"). The Company's Ordinary Shares will commence trading at 8.00 a.m. today under the ticker symbol "CAGL" and the ISIN VGG1963P1009.
The Company has raised gross proceeds of approximately £17.36 million via the issue of 10,783,627 Ordinary Shares by the Company ("Subscription") at a price of 161 pence per share ("Subscription Price"). In addition, upon Admission, BP Oil International Limited ("BP Oil") has agreed to subscribe for £10 million of convertible loan notes, issued by the Company pursuant to a convertible loan note agreement dated 4 June 2026 ("Convertible Loan Notes").
On Admission, Coastal will have 135,783,627 Ordinary Shares in issue with a market capitalisation of approximately £218.66 million at the Subscription Price. The Company is an investing company for the purposes of the AIM Rules. Coastal has been established with the ultimate objective of creating value for its investors through the acquisition and management of companies or assets in the energy sector.
The Company's acquisition strategy will be primarily focused on the oil and gas sector (including upstream and midstream opportunities), energy infrastructure, energy services and energy assets in West Africa, though it may consider opportunities in other jurisdictions where the Directors believe there are opportunities to create shareholder value.
The Company does not currently own any trading businesses or operational assets and has not generated revenue to date. The Company has three subsidiaries, one of which is incorporated in a core target jurisdiction, and no subsidiary has traded to date. The Company expects to achieve its investment objectives and strategy and deliver capital appreciation by undertaking an acquisition, which will result in the Company becoming an operating company and its Investing Policy ceasing to apply (the "Acquisition").
Whilst the Company seeks to identify and undertake the Acquisition, it intends to use some or all of the net proceeds of the Subscription and the Convertible Loan Notes to (i) acquire a portfolio of minority, non-controlling interests in assets in the West African oil and gas sector (the "Minority Investments"); (ii) fund transactional due diligence costs and minor corporate expenses to enable the Company to seek opportunities and pursue its strategy in relation to the Acquisition and any Minority Investments; and (iii) fund, in part, the Acquisition.
The Company's Admission Document and information required pursuant to AIM Rule 26 is available on the Company's website at https://coastalafrica.com.
Commenting, Peter Kimpel, Non-Executive Chairman of Coastal, said:
"Today marks an important milestone for Coastal as the Company commences trading on AIM and begins executing its strategy to identify and develop compelling energy opportunities across West Africa. The Company is now well-equipped to capitalise on the opportunities in the region, which continues to present a highly attractive environment for experienced operators capable of partnering constructively with governments, local stakeholders, and industry participants to unlock value from strategically important energy assets."
Conrad Clauson, Chief Executive Officer of Coastal, added:
"We are pleased to complete our Admission to AIM which puts Coastal in a strong position to pursue its growth strategy. Our approach is founded on the integration of upstream, evacuation and marine capabilities, which we believe can enhance operational efficiency, reduce execution risk and support stronger asset economics. We see a significant opportunity across shallow-water West African projects and look forward to leveraging the experience of our team to progress opportunities capable of delivering attractive returns for shareholders while supporting broader regional development objectives."
Highlights:
| · | Coastal is an 'investing company' and intends to make an initial acquisition within 18 months, which will result in the Company becoming an operating company. |
| · | The Company intends to undertake an acquisition, which will result in the Company becoming an operating company. Whilst the Company seeks to identify and undertake the Acquisition, it intends to acquire a portfolio of minority, non-controlling interests in assets in the West African oil and gas sector. |
| · | The Company's integrated strategy aims to enhance project execution efficiency, improve asset returns, and reduce execution risk, by: |
| ° | Mitigating third-party reliance, risks, and conflicts typically encountered by pure-play upstream or infrastructure operators. |
| ° | Turning process storage and evacuation costs into a revenue stream, which could reduce break-even dollar per barrel cost, reduce exposure to oil price volatility and remove third-party risk of delivery, unlocking transactions that may otherwise not be plausible. |
| · | The Company has entered into an exclusivity agreement with BP Oil relating to the offtake and marketing of crude oil and condensate. |
| · | Structural, regulatory and market trends in the Company's core target markets of Nigeria and Angola support a timely and highly attractive environment for energy investment: |
| ° | Nigeria and Angola are experiencing economic and demographic fundamentals supportive of sustained growth in domestic demand for oil and gas resources, including GDP growth and electricity supply deficits, while holding significant resources: |
| · | Nigeria holds the largest proved reserves of natural gas in Africa and the second most proved reserves of crude oil in Africa and benefits from attractive geology and crude quality. |
| · | Angola has the second highest crude oil exports of African nations, with oil and gas accounting for approximately 99% of all Angolan exports. |
| ° | Recent fiscal & regulatory change in Nigeria and Angola provide an attractive impetus for new oil and gas investment. |
| · | Nigeria aims to double oil production to approximately 3 mmboe and increase gas production to approximately 12bcf'd by 2030. |
| · | Nigeria has improved the investment environment, by passing legislation, including the Petroleum Industry Act 2021. |
| · | Angola has implemented regulatory, fiscal, and institutional reforms, resulting in greater regulatory independence and the introduction of fiscal incentives. |
| ° | Opportunity to access material, shallow water assets, making this a pivotal time to invest in West African oil and gas, via international oil companies and the Nigerian National Petroleum Company Limited ("NNPCL") divesting assets, historical and upcoming bid rounds and the opportunity to support local operators and licence holders who lack the funding and expertise to bring assets into production. |
| · | The Coastal team have a proven track record of delivering material value to shareholders: |
| ° | The Company's strategic foundations trace back to 2008, when Coastal Energy Company was established as a focused shallow-water operator in Thailand. Conrad Clauson, the Company's Chief Executive Officer, was among the early investors in this venture. Concurrently, he founded Viking Storage Solutions (Mauritius) Ltd to provide evacuation solutions, which were essential for bringing Coastal Energy Company's offshore assets into production. |
| ° | In January 2014, Compañía Española de Petróleos, S.A.U. acquired Coastal Energy for an enterprise value of approximately C$2.3 billion, an approximate 6x return on invested equity. |
| ° | The Company sees a compelling investment opportunity to replicate the upstream, marine, and evacuation interplay in the development of proven shallow-water reserves across West Africa, underpinned by what the Directors view as favourable structural, regulatory, and market dynamics |
| ° | Coastal will be supported by a highly experienced senior management team, combining global execution capability with strong local expertise. |
| ° | The team further benefits from direct transaction and operational experience in Nigeria's oil and gas sector, with Coastal's CFO having worked on multiple realised upstream investments for Helios Investment Partners and led its full lifecycle investment in Axxela Group. |
| ° | Coastal's senior management team brings extensive global experience across the upstream and midstream oil and gas value chain, with a strong track record of delivering complex offshore developments, infrastructure-led projects, and asset monetisation strategies across multiple jurisdictions. |
| ° | Members of the team have operated across key energy markets including Nigeria, Angola, Brazil, the North Sea, the Middle East, and Southeast Asia, with experience spanning Floating Production, Storage and Offloading units (FPSOs), Mobile Offshore Production Units (MOPUs), subsea infrastructure, and integrated gas-to-power solutions. |
| ° | In Nigeria, members of the team have significant in-country execution experience, having worked across a broad portfolio of assets. This experience covers field development planning, production optimisation, evacuation solutions, and infrastructure integration. |
TOTAL VOTING RIGHTS
The total number of Ordinary Shares in issue on Admission will be 135,783,627, each carrying the right to one vote and the total number of voting rights will therefore be 135,783,627. No shares are held in treasury. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.
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