Petrel & Warrego Have Signed Agreement for Merger Via Reverse Takeover

Petrel Energy Limited (ASX: PRL) is into the exploration of petroleum, development, and production. The company strategically aims to identify and pursue early stage high quality and potentially material energy assets through which it can leverage off its core competencies, including its people and experience. This will create significant value for the shareholders over a relatively short period. It has projects in countries like Australia, Spain, and Uruguay.

On 21 December 2018 Petrel Energy Limited and Warrego Energy Limited have signed an agreement on Share Purchase. They agreed upon the merger via a reverse takeover. The Extraordinary General Meeting of PRL will be held on 15 March 2019. The reverse takeover is conditional on the approval of the shareholders of Petrel at the EGM.Â

Strike Energy Limited is an operator of EP469 where it is in a 50:50 partnership with Warrego. It has announced that drill site preparation and other civil works have commenced for the upcoming West Erregulla-2 campaign.

The company in the recent past have announced that it has completed the Warrego Convertible Note Issue after raising $5,050,000 which is $1,200,000 above the amount already disclosed in the recent Notice Of Meeting of Petrel.

A Share Purchase Agreement has been signed by Petrel and Warrego on 21 December 2018. They agree on a merger via a reverse takeover.

The convertible notes will be converted into shares in the capital of Petrel subject to the completion of the RTO as per the terms and conditions. The notes are convertible into shares in the capital of the company at the election of the holder of the convertible note.

This is expected any time before the maturity date of 31 December 2019, at a conversion price which was determined as the volume weighted average price of the company’s shares over an applicable ten-day trading period or the price at which a capital raising has been undertaken by the company.

Secondly, automatically on admission of the company to quotation on AIM, at a conversion price equal to the listing price for the company’s admission to AIM, and finally automatically on maturity date of 31 December 2019, at a conversion price determined as the volume weighted average price of the company’s Shares over the ten days preceding the maturity date.

The Managing Director of Petrel, Mr David Casey said that the company is pleased about the fact that Warrego has received so much support for the convertible note issue which is an indication of a vote of confidence in Warrego.

On the price-performance front, the stock of Petrel Energy Limited last traded at $0.003 with a market capitalisation of ~$7.24 million. The stock has generated a YTD return of 40.0% and posted a significant return of 75.0% over the last six months period. It had a 52-week high price of $0.007 and a 52-week low price of $0.001 with an average trading volume of ~6.56 million.


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