Pancontinental Oil & Gas NL has signed a heads of agreement (HOA) to acquire Australian oil and gas explorer Bombora Natural Energy.
Under the HOA, Pancontinental will issue 26 shares for each Bombora share.
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As part of the all-share acquisition, Pancontinental plans to raise $3m to fund its ongoing activities, including field activities and drilling under the Tulainyo, Dempsey, Alvares and Walyering farm-ins.
Through the proposed acquisition, Pancontinental will gain interests in near-term projects that are close to strong gas markets and existing infrastructure and have the potential for rapid development and early production.
Pancontinental Oil & Gas NL CEO Barry Rushworth said: “We are delighted to reinforce the company’s oil and gas asset portfolio with a number of exciting new near-term projects, including drilling, through the acquisition of Bombora Natural Energy.”
Furthermore, in connection with the Sacramento basin, the company is targeting overlooked petroleum systems for commercial gas production.
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By GlobalDataThe company also has the opportunity to acquire projects that have the potential to open up the basin.
Under a farm-in agreement with Sacgasco, Pancontinental will earn a 10% interest in the Dempsey Gas Project in the Sacramento basin by funding 20% of a planned 3,200m well.
Drilling at Dempsey-1 is scheduled to commence next month.
Pursuant to a farm-in agreement with Sacgasco and Xstate Resources, Pancontinental will earn a 15% interest in acreage within a large prospective area, which comprises at least three identified prospects near the Dempsey Gas Project.
Under a farm-in with UIL Energy, the company can earn a 70% operated interest in the southern part of onshore exploration licence EP 447 in Walyering gas field in the Perth Basin by carrying out permitting for the project and acquiring a 3D seismic survey.
The acquisition of Bombora is expected to be closed next month and Pancontinental is planning further asset expansion in the US, Africa and Australia.
