- Oilers Indus Energy are looking to change its name to New Era Oil and Gas after executing an agreement to purchase the company
- Indus will purchase 100 per cent of New Era’s shares and will issue 100 million of its own shares to New Era holders as consideration
- Indus are most looking forward to adding New Era’s Queensland tenements to its portfolio of operations
Indus Energy has moved closer to purchasing industry cohorts New Era Oil and Gas this morning.
The deal was first mentioned last year in October. Today, talks have advanced to executing the non-binding agreement that was previously drawn up.
Indus will purchase 100 per cent of New Era’s shares and is to issue 100 million of its own shares to New Era holders as consideration.
Shareholders in Indus will soon receive a draft Note of Meeting. The issued document will contain all details of resolutions required to complete the purchase. A prospectus is currently being finalised as well.
Indus Energy Director Jonathan Whyte expressed delight in having the opportunity to operate on New Era’s held tenements.
“At completion, the Company will be headed up by a first-class technical and corporate management team, led by Mr Gordon Moseby, who have an intimate knowledge of the Cooper/Eromanga Basin and a track record of exploration success in the region,” said Johnathan
New Era holds farm-in rights for the Cooper and Eromanga Basins in South West Queensland. Most recently, a tenement on site has been estimated to hit a possible 770 million barrels of oil in production.
Subject to shareholder approval, Indus will be renamed to New Era’s namesake.
“The Board feel confident that New Era will be able to add scale and build value through both the rapid development of the existing asset portfolio and also through the identification, evaluation and acquisition of additional assets,” concluded Johnathan.
Indus will undergo a capital raising shortly, issuing 200 million shares at a price of $0.02 per share. This will effectively raise $4 million if successful.
Share prices in IND are unchanged today, continuing to trade for 2.1 cents in a $3.47 million market cap.