Octanex, Peak working toward merger
Tuesday, May 20 2014 - 03:29 AM WIB
Octanex NL and Peak Oil and Gas Ltd, both ASX-listed firms, are working towards completing a proposed merger, which would help ensure funds for the latter to finance seismic program at South Block A PSC in North Sumatra.
Octanex said in a statement Tuesday that it has executed an Implementation Agreement with Peak Oil and Gas Limited, an initial step in the proposed Scheme of Arrangement to be undertaken by Peak whereby it is proposed that Peak merge into Octanex.
?Simultaneously, Octanex has entered into a loan agreement with associated security documentation, enabling Peak to meet an agreed budget until the end of this calendar year. The loan will enable Peak to complete the South Block A seismic program in North Sumatra and to fund the initial costs of preparation for an oil-target well,? the company said in the statement.
The Scheme of Arrangement will be submitted by Peak to its members and option holders for approval, and will also require final approval from the Supreme Court, it added.
The proposed Scheme consideration is the issue of 1 Octanex share for every 24 Peak shares. In addition, if the Scheme is approved by shareholders and ratified by the Supreme Court then, in an addition to the Scheme consideration, a further contingent bonus consideration will be payable by Octanex equal to a further 1 Octanex share for every 24 Peak Shares. The bonus relates to Peak?s interest in the Cadlao project in the Philippines which has been the subject of dispute for some time. If the dispute can be satisfactorily resolved then the bonus consideration will be the full 1 Octanex share for 24 Peak shares.
Octanex is a company associated with Peak?s Chairman EG Albers. The company reportedly by this portal on January 3 agreed to fully underwrite Peak?s planned rights issue scheme to raise proceeds for the South Block A PSC development.
Peak holds an effective 38.25 percent interest in the South Block A (SBA) PSC, which is operated by Renco Elang Energy Pte Ltd (REE), a company controlled by Peak, with a 51 percent interest. Other Peak?s partners in SBA are KRX Energy Pte Ltd (KRX) and PT Prosys Oil & Gas.
Editing by Reiner Simanjuntak