Applecross based Hawk Resources Ltd has reached agreement to acquire 100 per cent of the issued capital of oil and gas exploration company New Standard Energy Ltd.
Applecross based Hawk Resources Ltd has reached agreement to acquire 100 per cent of the issued capital of oil and gas exploration company New Standard Energy Ltd.
Hawk Executive Chairman Harry Hill said today the proposed transaction provides significant corporate, strategic and financial benefits to Hawk and its shareholders.
"NSE is a quality story. It has a prospective oil & gas portfolio with drill ready targets in a relatively low cost on-shore exploration setting," said Mr Hill.
"It is led by an experienced board and technical team featuring proven oil finders with substantial exploration and development expertise. Combining these significant attributes with the current favourable oil and gas prices makes the acquisition very exciting for Hawk and its shareholders".
NSE Managing Director Sam Willis, echoed Mr Hill's sentiments, stating that the merger provides NSE with the structure and capital to keep advancing towards the Company's objective of systematically exploring its portfolio in the Canning Basin with a view to identifying and then developing significant deposits of oil.
"The Canning Basin boasts geology known to host oil and gas," said Mr Willis.
"The region has been neglected for some years but the fact that its geology has similar characteristics to many of the global giant and super giant oil fields, and that we have a very good understanding of the petroleum systems means that we are sitting on a valuable portfolio. The increase in activity in the area between ourselves and ARC Energy will also see a sizeable amount of work conducted over the coming years."
"The assistance provided by this merger with Hawk has been very well received by NSE and its Board."
Darien Jagger, Head of Corporate Finance at Cygnet Capital, Corporate Advisor to both Hawk and NSE, said the merger will create a combined entity with a net cash position of approximately $5.5m based on current cash balances of both NSE and Hawk. Mr Jagger outlined plans for an additional raising of a minimum of $6.5m which is intended to be undertaken pursuant to a prospectus to be lodged with the ASIC in due course.
Upon completion of the Acquisition, Hawk will change its name to "New Standard Energy Ltd" to more accurately reflect the nature of the Company's new business.
