As foreshadowed here, Concorde Oil & Gas is buying Russia's Pechora Energy for up to $25 million and joining AIM.

Concorde, a stellar OFEX performer since its September float, has been scouting for assets in the Russian Federation and signed a memorandum of understanding with Pechora in December. A private Russian concern, Pechora owns the Luzskoye Field in north-eastern Russia, which Houston-based specialist engineering company Miller & Lents estimates to contain between 20 and 30 million 'proven, probable and possible' barrels of crude oil.

Concorde's chief executive Peter Hughes, a veteran of US oil giant Texaco, has struck a deal whereby Concorde will pay between $20 and $25 million in cash to buy Pechora Energy, subject to verification and closing valuation of the Luzskoye assets. The field is in the resource-rich Timan-Pechora Basin, which boasts 172 oil fields and estimated reserves of at least 15 billion barrels.

Concorde plans to raise at least some of the money it needs for the deal by floating on AIM, with the help of VSA Resources and Beaumont Cornish as nominated adviser. The precise amount to be sought and the price have still to be finalised.

In its brief career on OFEX, Concorde has raised £2 million in two stages and seen its shares soar from 0.62p to 15.25p before easing back to 12p now. If Pechora passes muster, they could go even higher.

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