AOW courts more guests to takeover party
American Patriot Oil & Gas (ASX:AOW) is now in discussions with “a number of other interested parties” about a potential takeover bid.
The small-cap ASX oil company told its shareholders today that Running Foxes Petroleum (RFP), which had lobbed in a $35 million takeover bid last month, is now formally kicking the tyres of the company with a due diligence process.
At the time, AOW told shareholders to take no action on the bid while it considered the offer and got the opinion of major investors.
It re-iterated this advice this morning, but revealed it was sounding out other players in the market on possibly conjuring a competing bid for the company.
“In addition to the ongoing discussions with RFP, AOW is also in discussions with a number of other interested parties and will keep shareholders fully informed on the progress of these discussions,” it said.
The takeover bid is a cash bid, valued at 22c per share, and is subject to RFP gaining 90% of the shares in AOW.
Running Foxes is a joint venture partner of AOW at its Rough House oil project in Colorado, having farmed into the project in February.
More on AOW
AOW holds a number of oil and gas leases in four states of the US, with the Northern Star project in Montana and the Rough House project in Colorado considered the leading assets.
Its overarching strategy is to work up assets to a point where it can farm them out to a bigger partner, while retaining a working interest in the asset and more often than not receiving a free carry on wells in the program.
In the case of Running Fox, it farmed into Rough House earlier this month, taking a 70% operating stake in the asset and committing for up to five wells.
In September last year it received an offer from a private company headed up by Edward Mike Davis to buy the assets of AOW for $20 million in cash.
AOW knocked back the deal, calling it “opportunistic” and wanting to test the market for a higher offer.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Longhou Capital Markets Pty Ltd (AFSL No. 292464). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.