- Decklar Resources Inc. (DKL)has closed its transaction for all the shares of Westfield Exploration, and Production Limited
- Decklar is an oil and gas company, and Westfield is a Nigerian entity with oil assets
- The transaction included US$7 million in cash, and 6 million Decklar common shares
- Westfield is seeking separate agreements for 40 per cent of its Emohua Field
- If successful, an extra 2.5 million Decklar shares will be issued to Westfield shareholders
- Decklar Resources Inc. (DKL)is unchanged trading at $0.59 per share as of 1:17 p.m. ET
Decklar Resources (DKL) has closed its transaction for all issued and outstanding shares of Westfield Exploration and Production Limited.
Decklar is an oil and gas exploration and development company, and Westfield is a Nigerian entity. Westfield recently signed an agreement with Erebiina Energy Resources Limited to participate in the Emohua Field.
The sales purchase agreement between Decklar and Westfield included a cash payment of US$7 million and the 6 million Decklar common shares.
Westfield’s risk finance and technical services agreement (RFTSA) is separate from its deal with Decklar. The RFTSA gives Erebiina 60 per cent equity interest for the Emohua Field. Decklar stated it is aware that Westfield is seeking to enter separate RFTSAs with one or more parties for the remaining 40 per cent interest in the asset.
If Westfield successfully enters additional RFTSAs for the Emohua Field, an additional 2.5 million shares of Decklar will be issued to Westfield shareholders.
“Closing the acquisition of Westfield now brings a third asset to our portfolio at Decklar… This is an attractive asset, and one that compliments the rest of our portfolio with a similar infrastructure advantage,” Duncan Blount, CEO of Decklar, said.
The Emohua Field is an undeveloped oilfield that Decklar believes has potential for near-term re-entry and re-completion activities, followed by field development.
Decklar Resources Inc. (DKL) is unchanged, trading at $0.59 per share as of 1:17 p.m. ET.