GNRL in techno-financial alliance with Canadian firm

Heramec Limited, a wholly-owned step-down subsidiary of Gujarat-based, Gujarat Natural Resources Ltd (GNRL) has signed an agreement with a Canadian company for a techno-financial alliance in the field of oil & gas exploration in India, GNRL informed in a filing with the Bombay Stock Exchange (BSE) on Monday.

"Heramec Limited, a 100 per cent owned step-down subsidiary of GNRL has signed an agreement regarding its working interest in the oil and gas fields located in India subject to its becoming effective only upon receiving necessary regulatory approvals," the company statement said.

"This techno-financial alliance will provide the company much needed latest technical expertise which shall in turn yield better results for the company," the statement added.

The transaction, contemplated as a plan of arrangement that involves restructuring of equity shares of Heramec Ltd with a consideration of US $ 20 million (approx. Rs 102.22 crore) in cash and 500 million shares of the Canadian partner company.

The transaction is based on condition precedent of getting necessary approvals from the government of India and other regulatory bodies, if any, the statement mentioned. The company further stated that the arrangement was a result of the sustained and concerted efforts over the last year by the team of Heramec.

The transaction would now provide GNRL with a vehicle to launch its unconventional expertise into India, the company said.