13/11/2013 - 14:30

Allchurch in Texas oil deal

13/11/2013 - 14:30

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Oil and gas entrepreneur Peter Allchurch is set to become a major shareholder in Perth company TW Holdings after striking a deal to sell a Texas shale oil project to the listed company.

Oil and gas entrepreneur Peter Allchurch is set to become a major shareholder in Perth company TW Holdings after striking a deal to sell a Texas shale oil project to the listed company.

TW plans to change its name to Beretta Oil & Gas upon completion of the deal, which is conditional on a $12 million capital raising.

Paterson Securities and CPS Capital have been mandated as joint lead managers for the capital raising at 20 cents per share.

Today's deal comes six months after TW announced its intention to acquire an interest in the Van Hoogen oil project in Texas.

The terms of the deal have changed substantially since then.

The vendors are Mr Allchurch, who has previously been involved in companies including Amity Oil, Cape Range, Aurora Oil & Gas and Eureka Energy, and Houston-based geologist Neville Henry.

TW will acquire an 80 per cent interest in 1,880 hectares of oil and gas leases in the Cline Shale oil play in the Permian Basin.

Under the original deal, TW planned to acquire a 40 per cent working interest in 2,521ha of leases in the same area.

The purchase consideration comprises of 51 million shares (after a 17 to 1 share consolidation), 20 million unlisted options each with a four-year term, exercisable at 30 cents, 70,000 convertible notes and $US3 million cash.

The 51 million shares will give Mr Allchurch and Mr Henry a 36 per cent shareholding in TW, which will have 141 million shares on issue.

The two men have been key strategic advisors to TW which is chaired by Scott Douglas.

In a presentation TW said the two men were involved in the discovery of the Eagle Ford shale in Texas, and are seeing to replicate their success with Aurora Oil & Gas and Eureka Energy.

The company's market cap on the listing will be $28 million.

Today's deal follows a long period of restructuring of TW, which was previously known as Cockatoo Ridge Wines.

The company had also considered buying an iron sands project in the Philippines, before opting to venture in the West Texas-based oil shale operation.

 

TW shares are up 80 per cent to 1 cent, as of 245pm, WST.

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