On 15 April 2019, Entek Energy Limited (ASX: ETE) announced that it has completed the acquisition of Alaskan leases (Project Peregrine) from Emerald House LLC, a wholly owned subsidiary of Elixir Petroleum Limited (ASX: EXR), which holds 13 leases in the Nanushuk formation (highly prospective project) on the north slope of Alaska.
At the completion, Entek issued 185 million convertible preference shares to Elixir. These, in turn, will convert to 185 million fully paid ordinary shares in Entek upon distribution in specie to Elixir’s shareholders. Additional cash consideration, which totals to US$1.347 million inclusive of the US$0.5 million loan facility was paid at the settlement. The distribution will occur in accordance with the revised timetable announced by Elixir on 10th April 2019.
The acquisition completion has brought an end to the phase of refocusing and reconstruction started by the Board in September 2017, building upon work undertaken by the previous company Board. Entek now moves forward into active exploration and to facilitate this change in focus, the restructuring of the Board was taken up to have requisite technical expertise. For this, Mr. Peter Stickland has been appointed as Non-Executive Chairman of the Company. He has around 25 yrs of experience (globally) in the oil and gas exploration and development.
Mr. Mark McAuliffe (outgoing Chairman) stated that he is pleased to announce that this development marks the re?birth of ETE as an oil and gas explorer at Nanushuk play of the north slope ( Project Peregrine), which is located between the Umiat Field on the southern end. The acquisition of Project Peregrine marks the analysis by the Board to re?set ETE on a path to deliver a sustainable and enhanced return to shareholders. Entek has a new focus on Board restructuring to accelerate its program of the share swapping following the completion of sale agreement (on April 15, 2019) will be done in the below mentioned chronological order:
- April 16, 2019, has been marked as ex-date for the capital reduction which is the date on which shares commence trading without the entitlement to participate in the in specie distribution.
- The record date for the capital reduction has been set on April 17, 2019
- Completion of the in specie distribution of the Entek convertible preference shares to all the eligible shareholders will happen on April 29, 2019
- On April 30, 2019, conversion of Entek convertible preference shares into Entek shares as well as date holding statements are sent to eligible shareholders.
At the time of writing (AEST: 03:30 PM on April 15, 2019) the stock of Entek Energy Ltd was trading at $0.012, with a market capitalization of ~$3.66 million. Its loss per share stood at 0.037 AUD. Its 52 weeks high stands at $0.021 and 52 weeks low at $0.009 with an average volume of 2,910,926. Its absolute return for five years, one year, six months, and three months are -90.76%, -36.84%, -25%, and 20%, respectively.
The stock of Elixir Petroleum was trading at $0.035 on ASX, up by 6.061% as compared to its previous day’s close, with a market capitalization of ~$12.7 million. Its loss per share stood at 0.006 AUD. Its 52 weeks high stands at $0.09 and 52 weeks low at $0.026 with an average volume of 534,057. Its absolute return for five years, one year, six months, and three months are -73.71%, -60.31%, -23%, and 6.45%, respectively.