Strike Energy buys UIL; Elixir finally does its Mongolian deal
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Two oil and gas takeovers wrapped up today — one in Australia and the other in Mongolia.
Cooper Basin gas player Strike Energy (ASX:STX) has moved to compulsory acquisition in its friendly takeover of UIL Energy.
The offer of 0.485 shares in Strike for every 1 share in UIL was made in October, worth $16.1m.
It was conditional on Strike raising $13m, which they secured later that month.
The deal gives Strike and former UIL investors gas assets in the Cooper Basin and oil and gas exploration tenements in the Perth Basin, a newly popular area that boasts Triangle Energy (ASX:TEG), Key Petroleum (ASX:KEY) and Mitsui as residents.
Strike’s recently acquired Erregulla exploration permit in the Perth Basin is next to the Waitsia gas field discovered by Beach Energy (ASX:BPT).
Strike shares dipped 6 per cent to 8.5c.
Oil and gas explorer Elixir Petroleum (ASX:EXR) has finished its takeover of the wonderfully named Golden Horde.
While friendly, this deal has taken a bit longer to complete: it was first proposed in October 2017.
The delay was caused by the fact that Golden Horde had not secured its production sharing contract from the government — the final step before drilling could begin — and the government needed to deliberate on that with the added complication of having a takeover on the table.
Elixir offered 79m shares for Golden Horde and its coal bed methane rights in an area directly adjacent to the existing gas markets of Northern China.
The company has been talking up the potential of the Nomgon IX CBM tenement, saying a report in November suggested a risked prospective resource of 7.6 trillion cubic feet (TCF) of gas.
“Resources” are oil and gas discoveries either not yet commercially viable or are mere speculation.
To put Elixir’s new asset in perspective, Australia has an estimated 203 TCF of proven coal seam gas resources.
Elixir also has exploration permits in Alaska and France.
Elixir shares rose 3 per cent to 3.6c.