Brief: Gear Energy says strategic combination With Striker Exploration Corp

Gear Energy

07/06/2016 21:15

June 7 (Reuters) - Gear Energy Ltd  GXE.TO  
    * 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:  ID:nCCN10BCCg  
Further company coverage:  GXE.TO  
 
 (Bengaluru Newsroom: +1-646-223-8780)