Canada’s Rally Energy Corporation has executed an agreement for the proposed acquisition of Scimitar Hydrocarbons. Under the proposed deal, it is anticipated that management of Scimitar's international projects will be contracted out to Rally.
The move is intended to secure a project that combines the opportunity to increase reserves and production with existing, stable short-term cash flow and a minimal debt load, according to a Rally press release.
The management, directors and advisory board of Rally believe that Scimitar's project initiative in Egypt can be expanded significantly with the infusion of additional project management expertise and a relatively modest level of new capital.
Rally is proceeding with a private placement financing, the proceeds from which will be advanced to Scimitar, on commercial terms, to support, among other things, the development of Scimitar's Egyptian interests. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
