Falcon Oil & Gas Ltd. (TSX: V.FO
) said that it has received approval from the shareholders of Falcon Oil & Gas Australia Ltd. (FOGA) for the acquisition of Sweetpea Petroleum Pty Ltd's 50 million shares or 24.22% interest in FOGA.
Sweetpea is a subsidiary of PetroHunter Energy Corp. (PHUN
). Closing of the acquisition is anticipated to occur within the next 5 business days and is subject to TSX Venture Exchange final approval.
According to the Falcon Oil & Gas press release
, FOGA is the registered holder of four exploration permits covering approximately seven million acres in the Beetaloo Basin, a Proterozoic and Cambrian age tight oil and gas basin.
Following the completion of the Share Purchase Falcon will own 200 million shares in FOGA representing 96.90% of the issued share capital.
The terms of the agreement include a cash consideration of US$3 million together with the issue of 97.86 million Falcon shares at $0.20 a unit to Sweetpea.
The total value of the consideration is $22.6 million. Sweetpea will own 10.7% of the issued share capital of Falcon after the agreement has been completed.
Falcon is an international oil & gas company engaged in the acquisition, exploration and development of conventional and unconventional oil and gas assets, with the current portfolio spread between Australia, South Africa and Hungary.
On Thursday morning, Falcon was trading at $0.21 a share. The company had a market cap of $171.6 million, based on 817.3 million shares outstanding.