Strike withdraws revised offer to acquire Aussie JV partner Talon

Strike Energy has withdrawn its revised non-binding offer to acquire Talon Energy, its joint venture partner in the Walyering gas field development project in Australia, as the two parties were unable to reach mutually agreeable terms to proceed with the acquisition, the companies said on August 1.

The revised proposal put forward by Strike involved acquiring all of the shares in Talon through a scheme of arrangement. The agreed exchange ratio was set at 0.4828 new Strike shares per Talon share, and as part of the deal, Talon shareholders would retain the Mongolian assets either through a demerger or sale. Strike’s original offer had an exchange ratio of 0.4586 Strike shares for every Talon share held.

“The parties agreed to enter into a period of confidential negotiations for the proposed transaction and to allow Strike to complete limited financial, legal and technical due diligence. Following the findings of Strike’s financial and technical due diligence and resultant negotiation of the finance facility, the parties were unable to reach mutually agreeable terms to proceed,” Strike said.

As a result, Strike has ceased engagement and will continue to operate the Walyering L23/EP447 joint venture in the normal course of business as part of its Perth basin exploration, appraisal and development programme.

Strike holds a 55% interest in the Walyering project and Talon owns the remaining 45%. Additionally, Talon has a 33% stake in a Mongolian coalbed methane project.