BRIEF-Gear Energy says strategic combination With Striker Exploration Corp

Tue Jun 7, 2016 5:06pm EDT
 
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June 7 (Reuters) - Gear Energy Ltd

* Board of Gear has approved an increase in capital budget to $12.5 million for 2016 conditional upon completion of arrangement

* Striker shareholders will receive, for each striker share held, 2.325 gear common shares

* Gear's management team, led by Ingram Gillmore, president and chief executive officer, will manage combined company

* Aggregate transaction value is approximately $63.7 million based on bought deal financing price for gear shares

* Gear received term sheet for pro forma $50 million senior secured revolving credit facilities to be provided on closing

* Aggregate transaction value includes assumption of net debt of Striker of $10 million

* Sees 2016 production at 5,250 boe/d

* Combination of gear and striker provides combined company with an additional 2,000 boe/d of 60% light and medium oil production

* Gear Energy Ltd. announces strategic combination with Striker Exploration Corp., a $15 million bought deal financing, and pro forma $50 million senior secured revolving credit facilities Source text for Eikon: Further company coverage: (Bengaluru Newsroom: +1-646-223-8780)