ASX-listed oiler, 88 Energy will now mop up all remaining stock in its Alaskan neighbour, XCD Energy, after its takeover bid secured 90.97 per cent of XCD’s shares and 93.31 per cent of listed options. Its all-scrip bid as originally announced back in April went unconditional last month after the company achieved the 50 per cent required threshold.
ASX-listed oiler, 88 Energy will now move to mop up all remaining stock in its Alaskan neighbour, XCD Energy, after its takeover bid secured 90.97 per cent of XCD’s shares and 93.31 per cent of the listed options. Its all-scrip bid, originally announced back in April went unconditional last month after the company achieved the 50 per cent required threshold.
Under Australian law if a takeover bid achieves at least 90 per cent takeup, the suitor can movce to compulsorary aquire the remaining shares on the same terms and conditions.
It was endorsed unanimously by the boards of both companies and supported by an independent expert. XCD Energy shareholders now have until 7pm EST on 13 July to accept the offer before it closes.
Despite the prevailing market gyrations in oil prices, both company boards and shareholders held the line and the overwhelming majority of XCD energy shareholders have approved the takeover.
With the deal now largely complete, the combined group has a net lease position of around 520,000 acres, or over 2,100 square kilometres in one of the world’s richest hydrocarbon basins.
XCD Energy said its Peregrine project is located along trend from several recent, large oil discoveries made by US-based operators. The recent ConocoPhillips-operated Harpoon oil discovery is located only 15km northwest of XCD’s Harrier prospect, just one of three prospects in XCD’s Peregrine portfolio containing a total prospective resource of over 1.6 billion barrels of oil – a potential company-making target for any future exploration drilling program.
With XCD’s Peregrine project located just west of 88 Energy’s Icewine project which will soon be part of its expanded land bank, the combined landholdings may create more interest from local and international oil majors looking to cash in on the company-making oil riches that continue to be discovered in the region.
88 Energy said all new shareholders will benefit from its established oil exploration and appraisal capabilities which can now be deployed across its three complimentary lease areas, namely 88 Energy’s Icewine and Yukon projects and XCD’s Peregrine project. The newly amalgamated company will benefit from savings in corporate overheads which will help to minimise the combined company’s cash burn while it hunts for a new farm-in partner.
With the takeover bid all but done and dusted now, attention will turn to attracting a new drilling partner for the next exploration or appraisal well and the combined landholdings and lower joint overheads should set the company up well as it looks to dicover Alaska’s next major oil discovery on its uber-rich North Slope.
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