Dome Energy AB (publ) (OM:DOME) signed a contract to acquire Ginger Oil Company Inc. from Petrotarg AB (publ) for $4.9 million on April 27, 2017. The consideration of acquisition is payable by issuing 20 million shares of Dome Energy AB. Dome Energy will assume a bank debt of $2.5 million as part of the transaction.

There is an additional payment of 20 million shares to Petrotarg AB (publ) if certain parameters are met over the next three years. After the completion of transaction, Ginger Oil Company will be held separately from Dome Energy Inc. The transaction is subjected to bank review, Petrotarg AB shareholders' approval and due diligence. On June 6, 2017, the transaction is approved by the shareholders of Petrotarg AB.

The transaction is expected to close shortly after May 2017. Dome Energy expects Ginger Oil Company to contribute positively to EBITDA of Dome Energy.