(MENAFN- ProactiveInvestors - Australia) Strzelecki Metals (ASX: STZ) merger with unlisted private company Wolf Petroleum is drawing closer to completion afrter receiving acceptances from shareholders holding 71.9% of Wolf's shares.
Strzelecki is offering a 2.5 of its own shares, following a 10 for 1 share consolidation, for every Wolf share, valuing the oil and gas player at about A$35.2 million based on Strzelecki's current share price of A$0.017 (A$0.17 post consolidation).
With the issue of 206.9 million post consolidation Strzelecki shares, Wolf shareholders will hold the majority of the combined company, which will have 248.3 million shares on issue.
Strzelecki will be renamed as Wolf Petroleum following the acquisition and the combined company will retain Matthew Wood, who is also an executive director of Strzelecki as its executive chairman.
The offer had received the unanimous support of Wolf's independent directors, who noted a merger with Strzelecki, which provides it with a backdoor listing on the ASX, will grant the combined company greater financing capability and focus this solely on unlocking Wolf's Mongolian shallow low cost oil and gas prospects.
Mongolian assets
Wolf is currently conducting successful work programs across three blocks in Mongolia, an emerging petroleum province.
Wolf currently holds joint survey exploration block contracts at Jinst and Baruun Urt and has been recently been awarded a third block at Sukhbaatar with a product sharing contract to be awarded.
Of these, Baruun Urt in Eastern Mongolia is Wolf's flagship project. The 10,287 square kilometre block is located in a region with operating oil fields and estimated resources of up to 4 billion barrels of oil.
The block contains oil shales, bitumen occurences and brown coal.
By Bevis Yeo
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