Beacon Energy PLC on Tuesday said it has called an extraordinary general meeting to approve its acquisition of Rhein Petroleum Ltd as well as a capital fundraise.

The Isle of Man-based upstream oil & gas company with operations ranging from Europe, Africa to east Asia said the acquisition will be made, conditional to shareholder approval, for a consideration of 3.49 billion new shares.

The company also announced an associated conditional issue of 5.49 billion new shares at 0.11 pence each, to raise a total of £6.0 million, which will be used to fund the drilling of Rhein Petroleum’s SCHB-2 development will in Germany.

Shares in Beacon Energy were suspended at 0.18 pence each on London’s AIM market.

Beacon added that Rhein Petroleum’s assets provide a near-term active work programme, beginning with the SCHB-2 well.

The company said the acquisition constitutes a reverse takeover, and as such requires shareholder approval. It adds that its AIM shares having been suspended pending the acquisition since September 9 last year, with their readmission to trading expected on or around April 11.

Chief Executive Officer Larry Bottomley said: ‘We are delighted to have closed out this Fundraise which, despite the very challenging market conditions of the past couple of weeks, reflects good demand for the investment proposition that we put in front of new and existing shareholders.

‘The acquisition of Rhein Petroleum is truly transformative for Beacon, providing the company with proven reserves, existing and near-term production growth, material upside potential and an exciting pipeline of value catalysts in the next 18 months.’

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