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ASX / MEDIA RELEASE
ASX Code: MEL
16 March 2015
Termination of Elk Petroleum Merger
Metgasco today announces that it has terminated its merger with Elk Petroleum.
The proposed merger was subject to a number of conditions precedent, including Metgasco's ability to raise
funds to support the merger and a Material Adverse Condition (MAC) associated with oil prices.
The oil price MAC has been triggered. Based on discussions with numerous financial organisations, Metgasco has concluded that the chance of securing acceptable finance is now very low. This is due to a number of factors, including current oil prices, which are significantly lower than anticipated when the original merger terms were negotiated. As such, Metgasco's Board of Directors, has decided to exercise Metgasco's rights and terminate the Merger Implementation Deed.
Under the terms of the Convertible Loan Facility, which was put in place to support Elk Petroleum through
the merger implementation period, no further payments to Elk Petroleum will be made and Elk Petroleum has
30 days in which to repay the loan plus interest incurred. Of the overall A$2.5 million loan facility, A$1.69m has currently been drawn down. The loan is secured against Elk and all its assets.
Metgasco is disappointed that this opportunity has not been successful and will continue seeking means to realise value from its Clarence Moreton Basin exploration acreage and identifying opportunities outside of NSW.
ENDS
Background on Metgasco
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www.metgasco.com.au
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Metgasco has a 100% interest in PEL 16, 13 and 426 in the Clarence Moreton Basin in NSW where it operates the largest acreage position in the basin. Metgasco currently has 2C gas resources of 4,428
Petajoules (based on Metgasco's current understanding of the impact of the NSW Government's exclusion zones). The Company is exploring for conventional and unconventional gas. Metgasco has identified natural gas commercialisation opportunities that include local sales in the Northern Rivers Region, domestic sales to eastern coast domestic markets and LNG exports.
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For further information contact:
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Address:
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Peter Henderson
Managing Director & CEO
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Sean Hooper
Chief Financial Officer
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Level 11, 2 Elizabeth Plaza
North Sydney NSW 2060
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Tel: +61 2 9923 9100
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Fax:+61 2 9923 9199
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Metgasco Quarterly Report Page 1
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ELK Petroleum Limited
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CODE : ELK.AX |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
ELK Petroleum Ltd is a oil producing company based in Australia. ELK Petroleum Ltd is listed in Australia. Its market capitalisation is AU$ 12.0 millions as of today (US$ 8.0 millions, € 7.4 millions). Its stock quote reached its highest recent level on October 05, 2012 at AU$ 0.34, and its lowest recent point on June 29, 2019 at AU$ 0.01. ELK Petroleum Ltd has 854 049 984 shares outstanding. |