23rd Jul 2014 12:04
LONDON (Alliance News) - Mosman Oil & Gas Ltd Wednesday said that certain key conditions have been met as part of its planned takeover of Trident Energy Ltd for USD1.6 million in shares along with a cash loan.
The New Zealand and Australia-focused oil exploration and development company said earlier in July that the deal will be paid in three tranches.
"The Trident acquisition complements Mosman's existing Petroleum Creek and Officer Basin projects, ensuring that Mosman has a diversified asset portfolio in five prospective hydrocarbon regions," Executive Chairman John Barr said in a statement earlier this month.
The company said it firstly will issue 2.9 million shares in Mosman to acquire Trident's equity, before settling Trident's outstanding loans, directors fees and creditors payments by the issue of up to 2.5 million further shares.
Mosman has also agreed to provide a loan payment of up to AUD750,000 to Trident.
However, the company said at the time that the offer includes certain conditions including Mosman completing an equity capital raising of at least AUD2 million.
On Wednesday, Mosman said the board has agreed to waive its own requirement to complete a AUD2 million fundraising due to its recent success in other fundraisings.
It added that two key permits for Trident have now been renewed and Trident expects to be granted its exploration permit 145 shortly, both of which are other key conditions.
Mosman said that Trident's directors continue to unanimously recommend the acquisition in the absence of a superior competing proposal but that its bidders statement for the acquisition has been slightly delayed.
"We strongly believe in the Trident acquisition and the opportunity that exists with exploration funded by Mosman's strong cash resources. Good progress on documents has been made to date, and as is often inevitable when completing an acquisition there have been some minor delays," Barr said on Wednesday.
Mosman Oil & Gas shares were up 2.4% to 22.025 pence Wednesday afternoon.
By Tom McIvor; [email protected]; @TomMcIvor1
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