Published: August 14, 2023 |

[Click image to enlarge]

Strike Energy Ltd. has entered into a binding scheme implementation deed with Talon Energy Ltd. to acquire all issued shares of Talon, according to an August 14 announcement by Strike.

In addition, Talon will seek to demerge its Mongolian asset in a move that will potentially benefit its shareholders. The company made it clear, however, that there is no guarantee this demerger will take place, nor that it will provide additional value for its shareholders if it does, according to the announcement.

Talon’s board of directors has unanimously endorsed the scheme. Talon’s Perth Basin business alone has an implied offer price of A$0.2122, which is an approximate 21 percent premium to the company’s closing price as of August 11. If the deal proceeds as expected, shareholders of Strike will own approximately 89 percent of all issued Strike shares, while Talon shareholders will own approximately 11 percent, according to the announcement.

As part of the deal, Strike has agreed to provide Talon with an interim convertible funding facility amounting to A$6 million, which will be used to fund Talon’s capital requirements. The deal has the capacity to generate an initial annualized revenue of more than $82 million from the Walyering gas field alone, according to the announcement.

Source: Hart Energy

Strike Energy explores for and develops oil and gas resources in Australia. The company primarily focuses on the Project Haber, Ocean Hill, Perth Basin Geothermal, Walyering, West, and South Erregulla projects located in the Perth Basin. Strike Energy Limited was incorporated in 1997 and is based in West Perth, Australia.

Be in-the-know when you’re on-the-go!