The new London-based company, to be called ‘Virgo Energy,’ will be a medium-sized, independent business, with a North Sea exploration and production focus.

The AIM listing, expected in the first half of next year, will serve to raise sufficient equity funds for an “aggressive” exploration and development program, Nido, Virgo and Grove said.

“Not only will Nido, through Virgo Energy, have access to a much broader-based exploration portfolio in the UK, Virgo Energy will have firm plans to start drilling in 2006,” Nido managing director David Whitby said.

“Furthermore, Virgo Energy will source an independent team of highly experienced technical staff that will allow Nido to fully concentrate its efforts in Australia and the Philippines on monetising the assets in the Philippines where Nido has recently applied for more exploration acreage."

Virgo Energy will initially hold interests in 24 exploration blocks, comprising four in the northern North Sea, five in the central North Sea and 15 in the southern North Sea. Of the 24 exploration blocks, which cover 5,420 square kilometres, nine will be contributed by Virgo, seven by Grove and eight by Nido.

The companies also plan to appoint an independent chairman and CEO to the new company’s board. In addition, Virgo will appoint two board members, while Grove and Nido will each appoint one.

On a pre-IPO basis, Virgo will hold a 47.5% interest in the new company, Grove will hold 27.5% and Nido 25%.

Nido is an Australian-based, ASX-listed, exploration and production company with core areas in the Philippines and the North Sea.

Grove is listed on the TSX-V and AIM, and is focused on exploration and production activities in the Europe and Mediterranean basins.

Meanwhile, Virgo is a private, UK-based, exploration and production company. Virgo’s entire portfolio of assets will be transferred into the merged entity.