Terra Nova Energy Ltd. entered into an agreement with Perseville Investing Inc. to acquire a 30.833% working interest in petroleum exploration licenses (PELs) 112 and 444 in Australia.
A 1.47% gross overriding royalty interest on the PELs was also received. The PELs are on the western flank of the Cooper Eromanga Basin in the state of South Australia, and Terra Nova is the operator.
Henry Aldorf, CEO, said the agreement for PELs gives Terra Nova a majority working interest in two licenses close to established hydrocarbon systems, with minimal holding costs. Terra Nova is focusing near-term resources on the redevelopment of the Bobocu Field onshore Romania, he said.
Through the agreement, Terra Nova will issue 40 million common shares valued at $2 million to Perseville. Perseville is controlled by Carlo Civelli, who is the father of Nico Civelli, who is a member of Terra Nova's board of directors. After the transaction closes, Civelli will own about 44.54 million Terra Nova shares.
Terra Nova will submit the transaction for shareholders’ approval at its next annual general meeting. The transaction is subject to the approval of the TSX Venture Exchange.
Terra Nova also said that the board of directors approved a change of jurisdiction from the province of Alberta to the province of British Columbia in Canada.
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