Xtract disposes of Julia Creek and sells Moroccan subsidiary to Global Oil Shale Group
AIM-listed Xtract Energy has concluded negotiations with Global Oil Shale (GOS) group over Xtract's oil shale tenements at Julia Creek in Queensland, Australia.
AIM-listed Xtract Energy has concluded negotiations with Global Oil Shale (GOS) group over Xtract's oil shale tenements at Julia Creek in Queensland, Australia.
Under the terms of the agreement, Xtract will assign its oil shale rights in Julia Creek to GOS in exchange for a strategic equity stake in GOS of six million shares on signing the share purchase agreement and satisfying all closing commitments and a further 1.5 million shares in GOS in the event of its planned IPO (Initial Public Offering).
In addition, Xtract will have a long-term interest in the Julia Creek project through a 1% net smelter loyalty and an initial cash payment of AU$ 50,000 (£32,562) payable on signing the share purchase agreement and prior to GOS' commitment to a full work programme on Julia Creek.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The Julia Creek tenements cover an area of 709 square kilometres and contain JORC-defined indicated and inferred resources of 2.18bn barrels of shale oil at an average grader of 61 litres per tonne at zero moisture.
In a related transaction, Xtract has also agreed to sell its entire 70% interest in Xtract Energy (Oil Shale) Morocco S.A. to GOS subject to satisfying certain closing conditions.
Commenting on the transaction, executive chairman of GOS, said: "The disposal of Julia Creek and the sale of Xtract Energy (Oil Shale) Morocco S.A. to GOS will enable Xtract management to concentrate the focus of the company on conventional oil and gas opportunities."
Petri Karjalainen, Executive Chairman of GOS, commented: "Global Oil Shale is pleased to have concluded this agreement and looks forward to Xtract Energy joining as a strategic equity partner in GOS as well as retaining its ongoing interest in the Julia Creek project through the long-term royalty structure."
MF
-
Barclays warns of significant rise in social media investment scams
Investment scam victims are losing an average £14k, with 61% of those falling for one over social media. Here's how to spot one and keep your money safe
By Oojal Dhanjal Published
-
Over a thousand savings accounts now offer inflation-busting rates – how long will they stick around?
The rate of UK inflation slowed again in March, boosting the opportunity for savers to earn real returns on cash in the bank. But you will need to act fast to secure the best deals.
By Katie Williams Published