Crude Oil News Energy Review
crude oil news gas and energy are information oil future trading, market prices, mining energy, natural gas exploration drilling company industry review
Western Petroleum Commodities acquired Circumpacific Energy
Sponsor Links
Circumpacific Energy has entered an agreement to be purchased by a private oil and gas company, Western Petroleum Commodities Inc., for about $9.6 million. The junior oil and gas company said the acquisition would be equivalent to 18 cents per share, which is a 100 per cent premium over its 12 month average trading price.
If the agreement is approved, Drillsearch says it will buy Circumpacific’s joint venture interest in eight exploration tenements in Australia for $1.8 million.
Shares of the company were up 5.5 cents at 17.5 cents Friday afternoon on the TSX Venture Exchange.
Circumpacific Energy explores and develops properties in both Western Canada and Queensland, Australia. “This is a great result for the shareholders of Circumpacific, providing them with full liquidity at an attractive acquisition premium,” said Circumpacific’s chairman Jim McKerlie in a release.
Shareholders must vote on the agreement, which also needs both court and regulatory approval. Drillsearch Energy Ltd., based in Australia, holds about 79.4 per cent of Circumpacific’s outstanding shares, and has entered a support agreement for the transaction.