Australia

88 Energy launches A$7.5mln takeover bid for Alaska explorer XCD Energy

88 Energy Limited (LON:88E) (ASX:88E) has launched an all-paper takeover bid for XCD Energy, with a view to creating a consolidated Alaska-focused exploration company.

XCD holds some 195,373 acres on the North Slope in Project Peregrine which would add to 88 Energys 480,000 acres which span across the Project Icewine and Yukon licences. The XCD assets are described as “attractive and complimentary”.

88 Energys unsolicited bid is worth A$7.5mln – the offer is 1.67 new 88 Energy shares per XCD share, plus 0.5 88 Energy shares per XCD listed option – and it already has the backing of major XCD shareholders accounting for 18.5% of the equity and 6.8% of the options.

READ: 88 Energy says latest Charlie-1 well findings are “encouraging”[hhmc]

With an implied price of 1 Australian cent per share – based on a 10 day VWAP for 88 Energys shares – the offer is presented as offering XCD shareholders a 100% premium.

88 Energy said that constructive talks took place over the weekend with XCDs management, though a “short timeframe prevented execution of a bid implementation deed.”

It is intended that further talks will continue with the aim of securing an agreement and recommendation of the bid.

"In a combined company, XCD Energy shareholders and listed option holders will be able to leverage from 88 Energy's geological and operational expertise, specific to the North Slope of Alaska, where we have drilled four wells as Operator and acquired several 2D and 3D seismic surveys over the last five years,” Dave Wall, 88 Energy managing director said in a statement.

“This includes extensive technical knowledge of the regionally successful Brookian oil plays, in which 88 Energy retains significant upside exposure via its highly prospeRead More – Source

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