Electric Guitar PLC Secures Option to Acquire Oklahoma Oil & Gas Assets

Electric Guitar PLC has not bought the Oklahoma assets yet, but it has secured something important – an option and an exclusivity window. In plain English, the company has lined up the right, but not the obligation, to acquire a slice of producing oil and gas assets plus related midstream infrastructure in Oklahoma, with a deadline of 31 July 2026.

For retail investors, this matters because Electric Guitar is still trying to turn itself into a business tied to behind-the-meter, or BTM, energy. That means generating power close to where it is used, in this case for local intensive compute sites and datacentres. This RNS shows the board is still chasing that strategy, even while the earlier Dunbar talks have been delayed.

Electric Guitar Oklahoma oil and gas option: what the company has actually announced

The new opportunity centres on Broadgate Midcon, LLC. Electric Guitar has entered into an option agreement to acquire all of Broadgate, but only if Broadgate first acquires interests in certain Oklahoma assets. The deal is also still subject to further due diligence by Electric Guitar.

Those underlying assets sit within a wider transaction being run through Vega Upstream JV, a joint venture between ADM Energy PLC and Covenant Oil Group Corp. Vega Upstream JV has signed a purchase agreement to acquire the wider Midcon asset package for a base purchase price of c. USD 14.9 million, and it has already paid a USD 500,000 deposit.

That broader Midcon acquisition is expected to close on or before 31 May 2026. Electric Guitar is not taking the whole package. Instead, it has the option to buy Broadgate, which is expected to hold 50 per cent by value of certain operated upstream and midstream assets from that wider portfolio.

Key item	Figure
Broad Midcon wider purchase price	c. USD 14.9 million
Deposit already paid by Vega Upstream JV	USD 500,000
Expected debt financing for wider deal	Approximately USD 14 million
Expected equity contribution to Vega Upstream JV	USD 1 million
Electric Guitar option exercise price	Not expected to exceed USD 6 million
Option and exclusivity deadline	31 July 2026

What Broadgate would give Electric Guitar if the option is exercised

The upstream part looks like a real producing asset rather than a blue-sky concept. Broadgate would hold 50 per cent by value of operated upstream assets that include an average working interest of 49.4 per cent in 28 operated natural gas, natural gas liquids and oil wells in Custer County, Oklahoma.

There is also future drilling potential. The package includes a defined portfolio of 58 horizontal drilling locations, with around 72 per cent attributable to the operated upstream assets.

On recent production, the relevant assets are said to comprise c. 3.2 million cubic feet equivalent per day, which the company also expresses as 533 barrels of oil equivalent per day. Importantly, around 58 per cent of revenue comes from crude oil and liquids, which can matter because liquids often support stronger economics than dry gas alone, although no profitability figures have been disclosed here.

The midstream element adds another layer. Broadgate would also hold 50 per cent by value of a natural gas gathering system moving c. 4.4 million cubic feet per day across roughly 4 square miles, charging a toll of USD 0.75 per thousand cubic feet. Midstream assets are the pipes and related infrastructure that move hydrocarbons, and they can provide fee income on top of well production exposure.

Why these Oklahoma assets matter for Electric Guitar’s BTM datacentre strategy

This is the strategic heart of the announcement. Electric Guitar says it wants to acquire BTM assets for locally powering datacentres, and the Dunbar discussions have already been framed around gas wells supplying local compute sites in the USA.

The Oklahoma package gives the board something more tangible to work with: producing wells, development inventory and a gathering system. That combination could be useful if the company wants control over both fuel supply and the infrastructure around it. It is not the same as announcing a signed datacentre power contract – that has not been disclosed – but it does fit the stated mission better than a vague “we are exploring opportunities” update.

There is another positive angle here too. Dunbar has been delayed because its asset base and deal structure have been changing. By introducing a second transaction, the board is showing it is not relying on one single route to build the business.

Reverse takeover, funding and dilution: the big investor risks in this RNS

Now for the bit that should keep investors grounded. If Electric Guitar exercises the Broadgate option, the deal would be treated as a reverse takeover, or RTO, under AIM rules. That usually means a much more involved process, including shareholder approval, an AIM admission document and re-admission of the shares to trading.

That matters because Electric Guitar’s ordinary shares remain suspended from trading on AIM. So while this RNS is strategically interesting, shareholders still do not have a live market in the stock at present.

Funding is another clear risk. The exercise price for the Broadgate option is not expected to exceed USD 6 million, plus costs and closing adjustments, and the company says the consideration is expected to be satisfied predominantly by assuming a proportional amount of the debt financing used for the Midcon assets, alongside some equity funding.

That cuts both ways. Using debt can reduce the amount of new equity needed upfront, which is better than an all-equity fundraise. But debt still has to be serviced, and this company is trying to transform itself through acquisition rather than from an established operating base, at least from what is disclosed here.

There are also transaction sweeteners for ADM and Covenant Oil Group. If the deal completes, they would be entitled to a total fee of USD 300,000, with up to half potentially paid in new Electric Guitar shares, plus a two-year warrant over shares equal in total to 5 per cent of the company’s issued share capital on completion of the RTO at a price 50 per cent above the RTO price. That is not unusual in small-cap deal making, but it is still a cost and a potential source of dilution.

What is missing from the RNS and what investors should not assume

The announcement gives useful operating data, but several key items are not disclosed. There is no reserve report, no EBITDA or cash flow guidance, no netback data, no expected return on investment and no timetable for Electric Guitar’s own funding package beyond the broad outline.

There is also no guarantee the Broadgate acquisition will proceed, just as there is no guarantee Dunbar will proceed. The company says that plainly, and investors should take it seriously.

My view on the Electric Guitar PLC Oklahoma asset option

On balance, I think this is a positive strategic update wrapped inside a high-risk corporate process. Positive, because Electric Guitar has secured exclusivity over assets that are producing, have associated infrastructure and appear to line up with the company’s BTM datacentre power story. That is a better place to be than having only one delayed target and a broad ambition.

But it is not a low-risk win. The shares are still suspended, the deal would be an RTO, financing is not fully nailed down in the RNS, and the company is trying to execute on more than one moving part at once. For existing shareholders, this announcement improves the pipeline. It does not yet remove execution risk.

The key date now is 31 July 2026, when the Broadgate option and exclusivity period expire. Between now and then, investors should watch for three things: confirmation that the wider Midcon acquisition closes, evidence that Electric Guitar’s due diligence is satisfactory, and clarity on how the company intends to fund and complete the RTO.

In short, Electric Guitar has put a real asset-backed option on the table. That is useful progress. Whether it becomes a value-creating deal is still very much to be proven.