2009-08-05-2009-08-01

To acquire company with interests in U.K., Norwegian North Sea.

Bayerngas Norge, Oslo, plans to acquire Genesis Petroleum Corp. Plc, Kent, U.K., (London AIM: GPC) for approximately £14.74 million (US$24.05 million). The sale already has the approval of Aker Capital AS and PGS, two major Genesis shareholders with holdings totaling 99.8 million shares. Genesis employees with holdings totaling 7.69 million shares have also agreed to vote in favor of the transaction. Remaining shareholders will be able to vote on the sale at the company's general meeting. Genesis chairman and CEO Gerry Harrison says, "The recent deterioration in the worldwide financial climate has led to [the company] no longer having access to the financial resources to make anticipated drilling commitments. The Genesis directors do not expect a change in financial market conditions in the short term. They therefore consider it appropriate for shareholders to be given the opportunity to realize their investment in the company for cash before the current value of the [company] is eroded by further cash consumption and possible license relinquishments." Bayerngas managing director Arne Westeng says the acquisition will be a shot in the arm for Genesis' sluggish drilling program. "Bayerngas considers Genesis to be an attractive company with a highly qualified and competent team and an interesting portfolio of exploration licenses in both the U.K. and Norway," Westeng says. "Upon completion of this transaction, Bayerngas intends to provide the resources to develop Genesis's existing activities, working with Genesis's licensing partners, where appropriate, and to expand Genesis's interests through licensing rounds, farm-ins and by acquiring additional licenses in the North Sea." Thomas Weisel Partners Group is adviser to Genesis, which has assets in the U.K. and Norway.