London-listed Mosman Oil & Gas has entered an agreement to take over unlisted Australian company Trident Energy.
The pair entered a binding bid implementation agreement which will see Mosman acquire Trident for a total consideration of about £1.6 million (US$2.7 million) which will be paid in three tranches.
Mosman will issue nearly 2.9 million shares to acquire 100% of the issued share capital of Trident and settle outstanding loans and directors' fees by the issue of 2.1 million shares.
It will also settle outstanding creditors by issuing up to 308,113 ordinary shares and provide a loan to Trident of up to A$750,000 (US$709,789).
Trident holds three key exploration assets in the prospective Canning, Amadeus and Otway basins, which are prospective for both conventional and unconventional oil and gas.
"The Trident acquisition complements Mosman's existing Petroleum Creek and Officer basin projects, ensuring that Mosman has a diversified asset portfolio in five prospective hydrocarbon regions,” Mosman chairman John W Barr said.
"Exploration of the five permits is fully funded and we believe the enlarged portfolio will deliver operational activity and exploration milestones in the coming months and years.”
Trident holds a 30% interest in Otway basin permit VIC/P62, in the Australian state of Victoria, where multiple possible drilling targets have been identified on a recent 3D seismic survey carried out by operator Loyz Energy.
The Australian company also has an application pending for a 100% interest in EPA 145 in the Northern Territory’s Amadeus basin which contains the West Walker-1 Discovery which flowed 3.5 million cubic feet of gas per day.
Trident also holds the right to farm-in to EP 478, in Western Australia’s Canning basin, where it can gain a 17.5% stake by funding 25% of the first well.