|By Marketwired .||
|June 16, 2014 12:13 PM EDT||
WEST PERTH, AUSTRALIA -- (Marketwired) -- 06/16/14 -- US-focused oil and gas producer Target Energy Limited ("Target") (OTCQX: TEXQY) (ASX: TEX) is pleased to provide the following corporate update.
Sale of 10% Interest in Fairway Project to Victory Energy
- As announced on 9 May 2014, Target has agreed to sell a 10% working interest in the Fairway Project to Victory Energy Corporation (OTCQX: VYEY) for A$6.5 million. The sale was subject to Noteholder approval (which was gained on 28 May 2014), completion of due diligence and execution of a Purchase and Sale Agreement.
- A Purchase and Sale Agreement is well advanced; it is anticipated that the deal will close on 30 June 2014.
- Partial redemption offers will be issued to Noteholders upon completion of the sale.
Substantial Shareholder Selective Buy-Back
- Target's largest shareholder is Investmet Pty Limited.
- Investmet's shareholders met on Wednesday 11 June 2014 and approved a selective buy-back of Investmet shares from Investmet shareholders (the Investmet Buy-back).
- The Investmet Buy-Back involved the transfer of securities in several listed and unlisted entities to those Investmet shareholders whose Investmet shares are being bought back (Participating Investmet Shareholders), including 113,727,137 shares in Target Energy Limited at a deemed price of $0.045 per share. Investmet will retain 4,047,863 Target shares following completion of the Investmet Buy-back.
- Investmet anticipates that the Investmet Buy-back will be completed on or around 16 June 2014.
- Each Participating Investmet Shareholder has signed an agreement with Investmet which includes a voluntary escrow arrangement under which the Participating Investmet Shareholder must not, without the prior written consent of Investmet:
(a) Dispose of any of the Target Energy Limited shares for a period of 6 months from the date of completion of the Investmet Buy-back; and
(b) Dispose of more than 50% of the Target Energy Limited shares for the 6 month period commencing on the date which is 6 months after the date of completion of the Investmet Buy-back.
Target Investor Relations (Houston)
+1 713 304 6962 cell
+1 713 654 4009 direct
+1 713 275 9800 direct
Business Development Manager (Perth)
+61 429 702 970 cell
+61 8 9476 9000 direct