[Ed. Note – This article does not meet our new editorial guidelines, nor does the company mentioned meet our investment criteria. It will be removed from the site in the future.]
Aziana Ltd (ASX:AZK) an Australian mineral exploration company active in gold and bauxite, has completed the acquisition of Eternal Resources Limited.
The former chairman of Eternal Mr. Neil Rinaldi will be included in the Board of Aziana as Executive Director. Mr. Rinaldi will be working in close cooperation with the CEO of Aziana Mr. John Morris for the further growth in the company. Additionally, there will be an extra effort put to enhance the oil and gas assets in Louisiana, which has been recently acquired by the company.
Eternal, prior to the acquisition, was an unlisted company that had a flourishing business in oil & gas exploration and production assets in the Gulf of Mexico.
How the Acquisition will help Aziana
Aziana has successfully completed the acquisition of Eternal, and with this it has put its first foot into oil and gas production. The company is also looking forward to buy a 60 percent working interest in Sleeping Tiger Project, in the Gulf of Mexico.
With the acquisition of Eternal oil and gas assets Aziana will be able to earn revenue in the short term which will be helpful in giving support to the diversified portfolio of the metal assets. The revenue will further back the company in attaining the growth in the oil and gas field.
Terms of the Deal
The boards of directors of both companies have signed a conditional agreement according to which Aziana has acquired the entire issued capital of Eternal on a scrip-for-scrip basis. Aziana has fully paid ordinary shares for every fully paid ordinary share of Eternal at a ratio of 4.25. As per the agreement the 92,039,697 fully paid up ordinary shares of Aziana will be allotted to the shareholders of Eternal.
Collarini & Associates, who are independent experts, forecasted net 3P oil reserves of 4.5MM bbl’s (Million barrels) and 3P gas reserves of 4.9Bcf (Billion cubic feet) in the starting. Also, the experts are looking forward for an increased exploration capacity backed by the potential Oil Resources of 4.5MMbbl’s and 50.6Bcf of gas.
Aziana Ltd is looking forward to holding a 10 percent working interest in the Raging Bull oil field & production well and platform. The location of this project is adjacent to the Sleeping Tiger Project. At present around 25-30 barrels of oil per day is being produced by the Raging Bull oil field & production well and platform.
Since its initial production, the Raging Bull Project has produced more than 135,000 barrels. Eternal acquired the working interest in this project through an option agreement exercised, in October 2012, with the same US joint venture partner.
Aziana will keep on its project of exploring gold, graphite, copper and bauxite projects in Madagascar along with citing opportunities to expand itself into the oil & gas segment in Madagascar.