The Board of Strzelecki Metals Limited (STZ) is extremely pleased to announce that it has entered into a Heads of Agreement with Wolf Petroleum Limited, pursuant to which Strzelecki will acquire all of the issued capital in Wolf Petroleum through an offer to Wolf Petroleum shareholders.
Wolf Petroleum Limited is an unlisted public company which focuses on oil and gas exploration, development and production in Mongolia. Wolf Petroleum 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 (PSC) to be awarded. Highlights of the Wolf Petroleum acquisition include: Aggressive onshore, low cost exploration with elephant upside; Giant package assembled across three blocks, with additional blocks being assesse; Shallow depths at between 500 metres and 3,000 metres; Strong and growing market domestically in Mongolia and in China; Blocks are proximal to multi-billion barrel oil fields located within Mongolia and within China to the south.
Strzelecki and Wolf Petroleum have entered into a Heads of Agreement pursuant to which the parties have given certain undertakings to each other in order to facilitate the implementation of the Share Offer. The Heads of Agreement contains certain terms usual for a transaction of this nature including customary deal protection mechanisms such as “no shop” and “no talk” restrictions as well as a right for Strzelecki to match a competing proposal.