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Proprietary Industries, Loon Energy and Nemmoco Petroleum enter into agreement regarding oil and gas interests in Asia
Proprietary Industries, Loon Energy and Nemmoco Petroleum enter into agreement regarding oil and gas interests in Asia.
About this update from Jura Energy Corporation
[{"type":"text","content":"\n\n\n\n\nCALGARY, April 18 /CNW/ - Proprietary Industries Inc. (\"Proprietary\") and\nLoon Energy Inc. (\"Loon\") today announced that Proprietary has acquired all of\nthe issued and outstanding shares of Frontier Holdings Limited (\"Frontier\")\nfrom Loon and from Nemmoco Petroleum Limited (\"Nemmoco\", and together with\nLoon, the \"Vendors\"). Prior to the acquisition of such shares, each of Loon\nand Nemmoco owned 50% of Frontier. Frontier, a private Bermuda company, is a\nparty to a series of farm-in agreements, which, subject to the approval of\nvarious government agencies, involve the acquisition by Frontier\n(collectively, with the purchase and sale of the Frontier shares, the\n\"Acquisition\") of the following oil and gas interests in Asia:\n\n- a 37.5% interest in a development and production lease (the\n \"Development and Production Lease\") covering a gas field; and\n\n- a 47.5% to 50% interest in five exploration blocks.\n\nAs consideration for the shares of Frontier, Proprietary has issued and\ndeposited into escrow, an aggregate of 14,958,838 common shares of Proprietary\n(the \"Proprietary Shares\"). The Proprietary Shares will be released from\nescrow (the \"Escrow Release\") and distributed to the Vendors, 7,479,419 to\neach of Loon and Nemmoco, upon receipt of the necessary government approval\nfor the Acquisition which is currently expected to occur within 120 days. In\naddition, Propriety has agreed to issue to the Vendors an aggregate of an\nadditional 500,000 Proprietary Shares (250,000 to each of Loon and Nemmoco)\nfor each 100 billion cubic feet of reserves of gas proven during the 5 years\nfollowing the Escrow Release, up to a maximum of an aggregate of an additional\n7,681,918 Proprietary Shares, in each case, subject to regulatory approval. In\ncertain circumstances, Proprietary may be required to pay cash to the Vendors\nin lieu of issuing such additional Proprietary Shares. Proprietary plans to\ncommission a technical report in compliance with National Instrument 51-101 in\nconnection with its interest in the gas field subject to the Development and\nProduction Lease.\nIn connection with the Acquisition, subject to the Escrow Release,\nProprietary has granted options to acquire an aggregate of 4.3 million\nProprietary Shares to certain directors, officers and employees of Frontier\nwho will have ke...