Global Oil & Gas (ASX:GLV) enters mid-week trading halt

• Global Oil & Gas (GLV) has entered a mid-week trading halt to plan and execute a capital raise
• The company will remain in the halt until January 15, or when an announcement is made, whichever occurs first
• GLV last entered a trading halt in August last year when it entered an exclusive heads of agreement to acquire a 20 per cent interest in Goshawk Energy
• The purchase was completed in early November and was paid for through a combination of cash and shares
• Shares in GLV last traded at 1.4 cents on January 12

Global Oil & Gas (GLV) has entered a mid-week trading halt to plan and execute a capital raise.

The company will remain in the halt until January 15 or when an announcement is made, whichever occurs first.

GLV is yet to disclose how much it intends to raise or what it will use the funds for once received.

GLV last entered a trading halt in August 2020 when it entered an exclusive heads of agreement to acquire a 20 per cent equity interest in Goshawk Energy.

Goshawk owns several prospective oil and gas licences in the Canning Basin of Western Australia which cover around 40,800 square kilometres.

The acquisition will help develop GLV’s Georgina Basin Helium Project in the Northern Territory by using Goshawk’s management and technical teams.

The purchase was completed in early November and Richard Barker and Patric Glovac were appointed to advance the partnership.

Under the initial heads of agreement, GLV paid Goshawk a non-refundable fee of $25,000 for an exclusive 90-day option period, and in return, Goshawk granted GLV the exclusive option to acquire the 20 per cent.

When GLV chose to exercise its option, it paid Goshawk $975,000 in cash and issued 128,571,429 fully paid ordinary shares — equal to 19.7 per cent of GLV shares on issue after the capital raise.

Additionally, GLV will need to issue $1.35 million worth of shares when drilling of a commercial hydrocarbon well begins.

Shares in GLV last traded at 1.4 cents on January 12.