Oil and Gas News

88 Energy proposes takeover of XCD Energy

88 Energy plans to make an off-market takeover offer to acquire all of the shares in XCD Energy.

Under the offer, the company is offering 1.67 new shares for every XCD Energy share held and 0.5 new shares for every XCD Energy listed option held.

88 Energy stated that the transaction would create an Alaska-focused oil exploration and appraisal company with a diversified portfolio of three highly prospective project areas: Project Icewine, Yukon Leases and Project Peregrine. 

The company outlined the key benefits, including the creation of an established oil exploration and appraisal company with a portfolio of exploration assets.

It also expects the proposal to offer enhanced strategic, commercial, technical and financial stretch to optimise funding of operations; the ability to optimise operation activity; and a strong board, management and technical team with a raven track record of advancing projects and delivering on milestones.

88 Energy managing director David Wall said in a combined company, XCD Energy shareholders and listed option holders would be able to leverage from its expertise.

“This includes extensive technical knowledge of the regionally successful Brookian oil plays, in which 88 Energy retains significant upside exposure via its highly protective portfolio of exploration/appraisal projects covering 250,000 net acts co-located on the North Slope,” Wall said.

The company expects the bidder’s statement to be dispatched to XCD Energy security holders by the middle of May.

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