88 Energy Plc (LON:88E) confirmed it has so far had received acceptances of 37.58% in its takeover offer for fellow Alaska explorer XCD Energy.
The offer remains open until June 25 and, to date, the proposal has been accepted by shareholders with a total of 262.96mln shares and 21.5mln listed options, representing 18.3% of those in issue.
Significantly, 88 Energy noted that XCD directors – which previously recommended the offer to shareholders – have now provided their acceptances for their shareholdings.
“The XCD Energy directors continue to unanimously recommend that XCD Energy security holders accept the offers, in the absence of a superior proposal and subject to the independent expert continuing to conclude that the offers are reasonable,” the company said in a statement.
To date, no such competing offer has been received by XCD, the statement noted.
The paper transaction sees the creation of an explorer with a diversified portfolio on Alaska’s North Slope, with three distinct key areas: Project Icewine, Project Peregrine, and the Yukon licences.
It will have improved scale, market presence and funding capability, and share liquidity, according to AIM and ASX listed 88 Energy.
The new company will leverage 88 Energy’s geological and operational expertise, specific to the North Slope of Alaska - where it has drilled four wells and acquired several 2D and 3D seismic data.
Significantly, the adds fresh drilling opportunities which promise catalysts whilst 88 Energy continues to work on the progression of the existing discoveries, conventional and unconventional, which require further appraisal and de-risking works.