- Global Oil and Gas (GLV) has entered an exclusive heads of agreement to acquire a 20 per cent equity interest in Goshawk Energy
- Goshawk owns several prospective licences that cover nearly 41,000 square kilometres in the Canning Basin of WA
- GLV will gain access to Goshawk's management and technical team which will assist with developing its Georgina Basin Helium Project in the Northern Territory
- GLV will pay Goshawk $1 million, including a non-refundable $25,000 exclusive fee
- Additionally, GLV must issue Goshawk with over 128.5 million fully paid ordinary shares after a planned capital raising of at least $1.7 million
- Once drilling commences, GLV will issue $1.35 million worth of fully paid ordinary shares
- GLV hopes to conduct an exploration program this year to test a variety of play types
- Company shares have skyrocketed 72.7 per cent to trade for 1.9 cents
Global Oil and Gas (GLV) has entered an exclusive heads of agreement to acquire a 20 per cent equity interest in Goshawk Energy.
Goshawk owns several prospective licences for oil and gas in the Canning Basin of Western Australia. Collectively, the licences cover roughly 40,800 square kilometres.
The acquisition is set to assist with developing GLV's Georgina Basin Helium Project in the Northern Territory by leveraging Goshawk's management and technical team.
"The assets represent a key part of Western Australia's onshore oil and gas potential, which is becoming more and more prevalent as energy security needs increase due to the current state of the world," Director Patric Glovac said.
"The addition of the Goshawk technical team also allows the company to progress EP 127 in the Northern Territory with added potency," he added.
GLV will pay Goshawk a non-refundable $25,000 fee for an exclusive 90-day option period. In exchange, Goshawk will grant GLV the exclusive option to acquire the 20 per cent equity interest through the issue of its shares.
Once GLV chooses to exercise its option, it must pay Goshawk, or its nominee, $975,000 in cash. Additionally, GLV must issue Goshawk with 128,571,429 (or equal to 19.7 per cent) fully paid ordinary shares after it undertakes a planned capital raising of at least $1.7 million
GLV will also need to issue $1,350,000 worth of fully paid ordinary shares at a three-month volume-weighted average price calculated up to when drilling of a commercial hydrocarbon well begins within three years of the acquisition.
Further, both companies need to conduct due diligence, receive all necessary approvals and develop a budget.
In addition to the planned capital raise, GLV has received firm commitments to raise up to $1 million through a placement.
GLV hopes to conduct a geochemical survey this year as part of its "transformative" exploration program on its existing licence in the Northern Territory. However, the permitting phase is still in process and travel restrictions are being monitored.
The exploration program will aim to prove the charge of helium to better define basement structuring and potential drape over basement related targets as well as further uncovering those prospects.
Company shares have skyrocketed 72.7 per cent to trade for 1.9 cents each at 1:30 pm AEST.