Octanex and Peak flag possible merger
PERTH (miningweekly.com) – ASX-listed junior oil and gas explorer Octanex on Friday announced a proposed merger with fellow-listed diversified energy company Peak Oil & Gas.
The merger would be done by way of a share exchange, with Peak shareholders exchanging their shares for Octanex shares. The consideration for Octanex shares would be no less than A$0.01 to each of Peak’s shares, thus setting a minimum consideration.
The full consideration would only be determined in the first quarter of next year, Octanex said on Friday.
Once agreed upon, the merger terms would be set and approved by Peak shareholders and by the Supreme Court.
To provide Peak with working capital prior to the implementation of the merger, Octanex has committed to fully underwrite a rights issue by Peak. The company was proposing to raise some A$1.9-million, offering shareholders two new shares for every five currently held.
Peak holds petroleum exploration assets in the Asia Pacific region, including the Cadlao oil field development project, in the Philippines.
Octanex has a portfolio of 17 exploration permits in Australia and New Zealand, focusing on three main areas offshore of Western Australia.
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