Alaska Pacific has entered into a purchase agreement to acquire all the outstanding shares and assets of Engineering Technology (ENTEC). Entec plans to accelerate both the national and international aspect of the business.
This new agreement marks a major extension of the Oil Sands Licensing Agreement between APEC and Entec announced at the end of March 2009. Under that previous agreement, Entec granted Alaska Pacific and any affiliates, North American License rights to its drilling solutions programs that will be used to advance oil sands recovery technology. This new agreement places APEC in the position of being able to use and license the solutions worldwide.
According to the terms of this new agreement, the Company will pay $7,000,000 and issue a total of 12,000,000 restricted common shares to the Entec shareholders at a deemed price of $0.25 per share. Additionally, APEC will raise $5,000,000 for working capital.
The agreement is subject to a full due diligence review of Entec. Completion of the due diligence and the closing is expected by no later than August 31, 2010. With the Entec acquisition, comes new methodology for the extraction of oil from oil sands wherever they occur. APEC's goal will be to utilize our drilling solutions to enhance current oil recovery in the Alberta and Saskatchewan oil sands and in other countries and make the exploitation of shallower depth oil sands much more environmentally acceptable and cost efficient than it is at present. The management of both companies looks forward to an exciting future with this new opportunity to make the combination of APEC and Entec industry leaders in oil sands recovery.
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