By OGJ editors
HOUSTON, Feb. 24 -- Petro Vista Energy Corp., Vancouver, BC, signed a letter of intent to acquire Loon Energy Corp., Calgary, in a business combination with definitive agreements to be reached by Mar. 13 and closing by May.
The deal would create a South America-focused exploration and production company.
Loon brings $2.75 million in cash and other assets that include a 20% working interest in a producing oil well in the Buganviles Association Contract in Colombia's Upper Magdalena basin.
Loon also contributes a 20% working interest in an exploration license contract that gives it the right to explore for and produce oil and gas from Block 127, a 2.4 million gross acre concession in northeastern Peru's Amazon basin. Loon holds the Peruvian asset in partnership with CEPSA Peru SA, which is carrying 100% of Loon's costs on an estimated $11.5 million 2D seismic program.
Petro Vista dedicates seven highly prospective assets with a range of operated and nonoperated working interests in more than 840,086 gross acres in Colombia and Brazil.
On closing, Petro Vista would have 62.7 million common shares, of which former Loon shareholders would own 30%. Petro Vista currently has 43.5 million common shares.