Source Petroleum sign definitive agreement to acquire Fuel-x

Nevada-based firm Source Petroleum, Inc. and Alberta, Canada-based Fuel-x International Inc. announced on Tuesday the signing of definitive agreement whereby Source would acquire all of the assets of Fuel-x for consideration to be satisfied in common shares at a predetermined ratio.

The Arrangement will be conducted under the provisions of the Business Corporations Act (Alberta) whereby Source and Fuel-x will be amalgamated and continue as one corporation expected to be named Source Petroleum Exploration Inc. The transaction will be subject to a number of conditions precedent, including certain escrow provisions for insiders of the Parties and approval from both the Source and Fuel-x shareholders, as well as regulatory and court approval.

Fuel-x owns a 30% working interest in the Tungkal PSC located onshore Sumatra, which is currently on production and a 50% working interest in the Sebuku PSC located offshore Makassar Straits, which contains a gas discovery with independently certified contingent P50 resources of 134.9 Bcf net to Fuel-x. (alex)