Strike makes Talon move

Perth Basin resident Strike Energy made an unsolicited proposal for its joint venture partner Talon Energy that has since been withdrawn. 

The pair are JV partners on the Wayerling gas field project, of which Strike owns 55 per cent and is operator. Talon owns the remaining 45 per cent.

Talon took to the ASX to reveal its JV partner had made an unsolicited, non-binding proposal to acquire all shares in the company, for which Strike was offering less than half a share for each Talon share held. 

Proposed conditions attached to the deal required Talon to demerge its Mongolian assets first. 

Further conditions imposed on the deal, according to Talon, required it to provide Strike with exclusivity and a response by 12pm on Sunday July 23.

Talon relayed that it had told Strike it planned to evaluate the proposal before allowing the buyer to progress to due dilligence, which would take about one week.

Strike then advised it had withdrawn the proposal with immediate effect, with Talon now telling shareholders they do not need to take any action regarding the outed offer. 

Talon also said it had not received any other written proposal from Strike regarding a change of control transaction. 

Strike had last year tried to buy out its other joint venture partner Warrego Energy but was trumped by an offer by Hancock Prospecting.

Perth Basin has been tipped as an emerging region for new oil and gas developments. 

Shares in Strike closed the day flat at 44 cents, while Talon shares were up 2.86 per cent at 18 cents.