Oz Strike Raises $9.21mn, Progresses Takeover of UIL

Australian Strike Energy has achieved settlement of a A$13 million ($9.21mn) capital raising which sees it satisfy a condition in its takeover bid for Perth Basin-focused UIL Energy, the company said October 31.

The capital raising is via a placement of new shares involving international and local institutional and professional investors.

Strike announced the takeover arrangement with UIL October 22, or which the capital raising was a requirement.

“UIL Energy shareholders should now have received a copy of Strike Energy’s Bidder’s Statement and the Acceptance Form in respect of the UIL Energy Offer,” Strike said.

The UIL Energy board of directors have unanimously recommended acceptance of the offer in the absence of a superior proposal and subject to an independent expert concluding the offer is reasonable.

UIL shareholders have until November 30 to accept the offer – unless it is extended.

“This is a compelling offer for UIL Energy shareholders to participate in a combination of Strike Energy and UIL Energy with significant positions in both the Perth Basin and Cooper Basin, and the potential to supply gas to both the West Coast and East Coast markets,” UIL chairman Simon Hickey said October 22.

“Both Strike Energy’s interest in the West Erregulla block and our portfolio enhances the likelihood of a merged entity becoming a substantial operator in the Perth Basin. The West Erregulla prospect, expected to be drilled in early 2019, along with Strike Energy’s current Jaw’s project, provides UIL Energy shareholders with exposure to highly prospective and significant projects,” he said.