Gaelic Resources has agreed to buy European Hydrocarbons, a new exploration company, for £1 million sterling and has conditionally raised £2.5 million in a placing of 250 million new shares. It also proposes a one-for-four open offer of an additional 105.6 million new shares at 1p per share.

The consideration for the acquisition is 105 million new Gaelic shares and 60 million new warrants. The placing is being made at 1p per share.

European Hydrocarbons was incorporated last June as a vehicle for certain European oil and gas exploration activities of Dr Colin Phipps and Dr David Quick, who are to become executive directors of Gaelic. They will end up with around 12 per cent of the enlarged Gaelic equity.