On December 13, 2018, Entek Energy Limited has announced that following the manifest successful participation by Elixir in a public bid round which is conducted by the regulator, the BLM (Bureau of Land Management), the portfolio of a lease is covered by the Option Agreement with Elixir has been substantially increased. The results of the bidding round have been published on the BLM website which shows successful bidding, yet official confirmation is awaited. Entek has been informed of the success of a bidding round overnight.
Entek Energy Limited (ASX: ETE) participates in the acquisition and exploration of oil and gas opportunities. They listed in 2004.
In Option Agreement, Entek confines an option to acquire Elixir’s interest in three leases situated in Alaska, and it is held through Elixir’s wholly owned subsidiary, Emerald House LLC. The agreement provides that if any additional leases acquired by Emerald House LLC shall be included in the potential acquisition by Entek. Deposits made by Elixir as part of the bid round are included in the share consideration.
On 10 December 2018, the bid was lodged, and it got accepted by BLM on 12 December 2018 (Alaska time). Before this lodgment, Entek and Elixir have jointly been working on the bid.
In inclusive to the three existing leases, the successful bid round now adds a further ten leases to the Option Agreement portfolio. The area currently under the lease will increase to 149,733 acres from 35,423 acres. The total amount of the bid was approx. USD 1.1M.
As stated by Entek Energy Limited Executive Chairman Mark McAuliffe, this deal is excellent news for Entek and its shareholders. Beginning the exercise of the option, Entek will hold leases over a potential area situated directly to the south of the Willow Field which is currently under consideration by ConocoPhillips. After many years of minimal activity, Entek will again be an active player in oil exploration in this exciting new oil province.
Due diligence provisions of the Option Agreement are advancing quickly, with a final decision is in late January 2019.
Financial performance: Revenue was $67,487, up 135% compared to $28,759in last year, total loss for the year was $594,987, down 53 % compared to $1,274,836.
New opportunities: the company has started the analysis of potential assets in the oil and gas sector. The process for that begun and multiple potential acquisitions are currently under consideration. The company has authorized Mr. Peter Stickland as a non-executive director. He will be engaged in a consulting role to undertake identification and analysis of new opportunities. Based on the new opportunities, the company remains confident that new assets will be acquired in the near term.
In the last six months, the price of the company has shown a negative return of 29.41 percent as on 11 December 2018 and 20 percent down over the past One month. Entek Energy Limited shares are trading at $0.013 with a market capitalization of $3.66 million as on 13 December 2018.
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