Strike Energy reignites buyout bid for gas project partner
Strike Energy has reignited its buyout bid for Talon Energy in what shapes up as the latest round of consolidation of onshore gas assets in the Perth Basin.
Strike is in a trading halt pending a “proposed material transaction” as is takeover target Talon. The twist comes after Talon announced to the market on Tuesday that Strike had withdrawn a take-it-or-leave-it buyout offer pitched last week.
The initial all-scrip offer lobbed by Strike valued Talon at about $125 million minus its assets in Mongolia.
Under the Strike proposal, Talon’s 33 per cent interest in Mongolian coal seam gas project Gurvantes would be spun out. Listed gas exploration group TMK Energy owns the remaining 67 per cent of Gurvantes.
Strike and Talon are partners in the Walyering gas project in the Perth Basin, where there has been a flurry of M&A since Strike launched a takeover bid for Warrego Energy last November.
Talon has been under pressure from investors over its failure to engage with Strike on the initial approach. Street Talk reported on Tuesday that angry shareholders had fired off an ultimatum to Talon’s board to take the proposal seriously, and were pushing for a deal as early as this week.
Strike chief executive Stuart Nicholls refused to comment on the status of any buyout offer on Thursday after Strike released its June quarter update. On the Walyering project, Strike said commissioning and production was expected in the September quarter.
The joint venture partners have signed a condensate processing and offtake agreement with Santos and a separate trucking agreement for delivery to Port Bonython in South Australia.
Mr Nicholls said Strike was hopeful of cracking the S&P/ASX 200 in the September rebalance, and pushing ahead with
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