- Global Oil & Gas (GLV) has provided updates regarding the sale of its Southern Georgia Project
- In March, Global entered a tenement sale agreement with Westmarket Oil & Gas to purchase its 100 per cent interest in tenement EP127
- Both companies have mutually agreed to extend the transaction end date from November 30 2019 to January 24 2020
- Following today’s trading halt Global’s share price is up 33.3 per cent today with shares trading for 0.2 cents apiece
Global Oil & Gas (GLV) has provided updates regarding the sale of its Southern Georgia Project.
Previously announced on March 28 and approved by shareholders at the extraordinary general meeting (EGM) on June 12, the company entered a tenement sale agreement with Westmarket Oil & Gas to purchase its 100 per cent interest in tenement EP127.
Both companies have mutually agreed to extend the transaction end date from November 30 2019 to January 24 2020.
In consideration for the extension, a further deposit of $75,000 is payable.
The deposit is in addition to an upfront payment to Global for the Northern Territory Department of Primary Industry & Resources and Central Land Council annual permit fees totalling $50,664.
In light of the improved market interest for quality helium projects, both companies have agreed to increased consideration terms for the transaction.
At the completion of the sale, Westmarket will pay Global a cash consideration of $1 million minus the $35,000 which has been previously paid as an initial deposit.
Also at completion, Westmarket will procure the issue to Global of the equivalent $3 million in shares in its parent entity as a deemed issue price equivalent to the IPO (initial public offering) price on the London Stock Exchange (LSE).
Completion of the tenement is subject to Westmarket successfully completing an IPO, raising a minimum of £2,500,000 (AUD$4.7 million) or the minimum required by the LSE.
Westmarket must have also obtained necessary written consents of the Minister under the Petroleum Act for the transfer of the tenements as set out.
“This is a great result for our shareholders and significantly increases the consideration payable under the transaction and better values this quality asset taking into account the worldwide demand for helium projects,” Global Director Jason Brewer commented.
Previously, Global agreed to pay Westmarket Capital PLC a 10 per cent success fee and GTT Ventures a five per cent success fee on any consideration actually received through the transaction at settlement.
Global and Westmarket Capital PLC have mutually agreed that the 10 per cent fee will no longer be payable and no success fee will be paid to Westmarket Capital PLC for the transaction.
However, the success fee payable to GTT Ventures remains alive.
Following the trading halt which it entered today, Global Oil & Gas is up 33.3 per cent with shares trading for 0.2 cents apiece.