Aziana has announced that they have reached a conditional agreement with the Board of unlisted public company Eternal Resources Limited (ACN 149 833 072) (“Eternal”) to acquire all the shares and options in Eternal by means of an off-market all-scrip takeover.
Eternal is an unlisted public company with exciting oil & gas exploration and production assets in the Gulf of Mexico.
Successful completion of the transaction with Eternal, which is subject to approval by shareholders of both Companies, will see Aziana diversify into oil and gas production. Aziana will be acquiring a 60% Working Interest (“WI”) in the Sleeping Tiger project in the Gulf of Mexico. Independent experts Collarini & Associates of Houston have determined initial net 3P oil reserves of 4.5MMbbl’s (Million barrels) and 3P gas reserves of 4.9Bcf (Billion cubic feet). In addition significant additional exploration upside exists with Prospective Oil Resources of 4.5MMbbl’s and 50.6Bcf of gas were estimated by Collarini & Associates. Eternal’s WI is held by an Area of Mutual Interest Agreement (“AMI”) with its US joint venture partner.
Aziana will also acquire a 10% WI in the Raging Bull oil field & production well and platform, which is located adjacent to the Sleeping Tiger Project and is currently producing between 25-30 barrels of oil per day. The Raging Bull oil production platform may potentially be used to tie-back early production from successful drilling on the adjoining Sleeping Tiger leases or a new production well drilled up-dip of the current producing Raging Bull well. The Raging Bull well has produced over 135,000 barrels since production began. The WI was acquired by Eternal via an option agreement exercised in October 2012 with the same US joint venture partner.
“Aziana believes that the acquisition and development of Eternal’s oil & gas assets can provide Aziana with a near term revenue stream that can be used to support its current diversified portfolio of metal assets and further growth within the oil & gas industry. Aziana will continue to explore its gold, graphite, copper and bauxite projects in Madagascar and also look to expand into the oil & gas scene in Madagascar,” the company said in a press release.
[mappress]
April 15, 2013