An easy target?
Movers and shakers of the Perth mining scene lodge a bid for an oil play with wells in Texas and Louisiana.
Advance Energy and Odin Energy have joined together to lodge a takeover bid for the appropriately named Target Energy in a scrip and cash offer worth approximately $3.6 million.
The companies' takeover vehicle Blaze Asset, led by Advance chairman Alex Bajada, is offering one cent in cash per Target share and three Advance shares for every four Target shares held. The cash consideration is being provided by Odin, which shares an office with Advance.
Bajada, a former stockbroker and managing director of Excalibur Mining, is a prominent Perth dealmaker and is a partner in investment firm BGU Capital, which is providing most of the corporate know-how at this stage. BGU, which also invests in Odin, Excalibur, Vector Resources, Kilgore Oil & Gas, AXG Mining, Regal Resources and Palace Resources, which includes Anthony Short and Gordon Sklenka – both directors of Advance – as partners.
Short is an experienced accountant, while Sklenka used to work with First Capital Group and on the corporate finance desk of DJ Carmichael. The group has engaged Hardy Bowen Lawyers, located just down Ord Street in West Perth.
Target Energy, also located in Ord Street, are advised by legal firm Murcia Pestell Hillard, of which Target chairman Didier Murcia – also a director of Gindalbie Metals – is a partner. Target, which also has a very appropriate stock-code of TEX, has oil wells in Texas and Louisiana.
Golden State Resources, another Perth oil and gas explorer operating in the US, has meanwhile announced the placement of $770,000 from institutional and sophisticated investors, on which the company will pay a commission of $46,200.
Elsewhere in the sector, Otto Energy has made a revised entitlement issue to option holders whereby eligible shareholders will be receiving three new shares for every four shares held. The issue, at 5 cents per new share, is expected to raise approximately $21.2 million before costs.
The issue has been partially underwritten by Euroz Securities, which previously managed an institutional placement of $5.2 million, and has received commitments from major shareholders Santo Holding and Molton Holdings, owned by German billionaires Doctors Thomas and Andreas Strngmann and Otto Happel respectively.
Otto non-executive director John Jetter, previously JPMorgan's head of investment banking in Germany, is being rewarded with 5 million shares, subject to shareholder approval, for helping to negotiate the sub-underwriting arrangements.
In addition to Euroz, which has a line in sourcing European investment for Australian firms, Grange Consulting, associated with Perth boutique advisory house Max Capital, acts as an advisor to Otto, with principal Ian Macliver sitting on the company's board.
One other ASX-listed oil company attracting European interest is Magellan Petroleum, which today announced amended terms to a $US10 million investment from Young Energy Prize (YEP), a Luxembourg-registered company owned by Russian businessman and politician Nikolay Bogachev.
YEP will acquire approximately 17.3 per cent of Magellan, which has primary operations in the Amadeus and Cooper-Eromanga basins. Bogachev made much of his fortune when he sold his Khanty Mansiysk Oil Corporation to Marathon Oil for about $300 million, his shares in a wood transporting company for a reported $800 million and certain natural gas assets estimated to be now worth $US2 billion to Gazprom.
The companies' takeover vehicle Blaze Asset, led by Advance chairman Alex Bajada, is offering one cent in cash per Target share and three Advance shares for every four Target shares held. The cash consideration is being provided by Odin, which shares an office with Advance.
Bajada, a former stockbroker and managing director of Excalibur Mining, is a prominent Perth dealmaker and is a partner in investment firm BGU Capital, which is providing most of the corporate know-how at this stage. BGU, which also invests in Odin, Excalibur, Vector Resources, Kilgore Oil & Gas, AXG Mining, Regal Resources and Palace Resources, which includes Anthony Short and Gordon Sklenka – both directors of Advance – as partners.
Short is an experienced accountant, while Sklenka used to work with First Capital Group and on the corporate finance desk of DJ Carmichael. The group has engaged Hardy Bowen Lawyers, located just down Ord Street in West Perth.
Target Energy, also located in Ord Street, are advised by legal firm Murcia Pestell Hillard, of which Target chairman Didier Murcia – also a director of Gindalbie Metals – is a partner. Target, which also has a very appropriate stock-code of TEX, has oil wells in Texas and Louisiana.
Golden State Resources, another Perth oil and gas explorer operating in the US, has meanwhile announced the placement of $770,000 from institutional and sophisticated investors, on which the company will pay a commission of $46,200.
Elsewhere in the sector, Otto Energy has made a revised entitlement issue to option holders whereby eligible shareholders will be receiving three new shares for every four shares held. The issue, at 5 cents per new share, is expected to raise approximately $21.2 million before costs.
The issue has been partially underwritten by Euroz Securities, which previously managed an institutional placement of $5.2 million, and has received commitments from major shareholders Santo Holding and Molton Holdings, owned by German billionaires Doctors Thomas and Andreas Strngmann and Otto Happel respectively.
Otto non-executive director John Jetter, previously JPMorgan's head of investment banking in Germany, is being rewarded with 5 million shares, subject to shareholder approval, for helping to negotiate the sub-underwriting arrangements.
In addition to Euroz, which has a line in sourcing European investment for Australian firms, Grange Consulting, associated with Perth boutique advisory house Max Capital, acts as an advisor to Otto, with principal Ian Macliver sitting on the company's board.
One other ASX-listed oil company attracting European interest is Magellan Petroleum, which today announced amended terms to a $US10 million investment from Young Energy Prize (YEP), a Luxembourg-registered company owned by Russian businessman and politician Nikolay Bogachev.
YEP will acquire approximately 17.3 per cent of Magellan, which has primary operations in the Amadeus and Cooper-Eromanga basins. Bogachev made much of his fortune when he sold his Khanty Mansiysk Oil Corporation to Marathon Oil for about $300 million, his shares in a wood transporting company for a reported $800 million and certain natural gas assets estimated to be now worth $US2 billion to Gazprom.
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