By OGJ editors
HOUSTON, July 20 -- Petrodorado Energy Ltd. signed a nonbinding letter agreement to acquire Loon Energy Corp. subject to entering a definitive agreement. Both are Calgary firms.
Petrodorado would issue 19.2 million shares to Loon shareholders under the proposed transaction plus performance shares equal to a value of $1.5 million on completion of 300 sq km of 3D seismic and $1.5 million upon spud of the initial well on Block 127 in Peru owned by Loon.
Further details concerning the proposed transaction are to be revealed if and when a definitive agreement is reached.
Petrodorado is engaged in exploration and development in Colombia, Peru, and Paraguay. It holds three low-risk blocks with oil discoveries and six potential high-impact blocks. Its 49.5% interest in Colombia’s Buganviles block in Colombia would rise to 69.5% if it acquires Loon.
Loon is involved in exploration and development in Colombia and Peru. Besides the 20% working interest in the Buganviles block in Colombia it has a 20% working interest in Block 127 in Peru’s Maranon basin.