Under the arrangements, PetroHunter or its subsidiary company Sweetpea, will initially farm into 33.33% of Lakes Oil's permits by spending $7 million.
In addition, PetroHunter will subscribe for $3 million in new shares in Lakes Oil.
PetroHunter will also have the right to increase its position in Lakes Oil's permits with two further 16.66% farm-in tranches of $10 million, exercisable within 12 months and 24 months respectively.
