Northbridge-based exploration company Kalgoorlie-Boulder Resources Ltd will push ahead with the sale of a 75 per cent stake in its Wilson oil prospect to Perth-based Louisiana Petroleum Ltd.
This is despite the announcement yesterday that minority stakeholder US based Metro Energy Group Inc, had terminated Louisiana's arrangement to purchase their 25 per cent working interest in the prospect, located 5 miles north of the city of Henryetta in Oklahoma, USA.
While KBRL's sale was conditional on the purchase by Louisiana of Metro's stake, the two companies have agreed to waive the condition.
Louisiana will send supplemental information to shareholders in relation to the proposed acquisition and postpone its shareholder meeting scheduled for July 24 to give them reasonable opportunity to consider the change in circumstances.
Shares in Louisiana were steady at 12.5 cents at 13.00 WST today, as were KBRL shares at 14.5 cents.
A copy of Louisiana's announcement to the stock exchange is pasted below
The directors of Louisiana Petroleum Limited (the Company or Louisiana) wish to advise that Metro Energy Group Inc. has today notified Louisiana that the agreement for Louisiana to purchase a 25% Working Interest in the Wilson Prospect, as announced to ASX on 3 April 2006, has been terminated.
The acquisition of the remaining 75% Working Interest in the Wilson Prospect, beneficially owned by Kalgoorlie-Boulder Resources Limited (KBRL ASX Code KAL) and announced to ASX on 2 May 2006, was conditional (amongst other things) upon the acquisition of the 25% Working Interest held by Metro Energy Group Inc. The Company and KBRL have agreed to waive this condition to enable the acquisition of the 75% Working Interest to proceed. As a result of the change in circumstances, the Company will send supplemental information to its shareholders in relation to the proposed acquisition and adjourn its shareholder meeting scheduled for Monday 24 July 2006 to a date to be determined. This will ensure shareholders have a reasonable opportunity to consider the change in the circumstances of the proposed acquisition.
