Stratic & Petrofac Form Exploration Joint Venture
Stratic Energy Corporation and Petrofac Resources International have formed a strategic alliance to explore for oil and gas in the Syrian Arab Republic and the People's Democratic Republic of Algeria. The transaction assigns Petrofac's rights under bids submitted for production sharing contracts to explore for, appraise, produce and develop hydrocarbon substances in Blocks X, XII and XVII onshore Syria. Furthermore, additional Petrofac rights under a bid submitted for a production sharing contract in Algeria relating to a highly prospective exploration block adjacent to the Hassi Mesaood oilfields have also been transferred to Stratic.
The transaction calls for the issuance to Petrofac of 7,272,727 common shares of Stratic at a deemed value of CDN$0.22 per share, in consideration for aforementioned rights. This represents approximately 24% of the issued and outstanding common shares of Stratic. Petrofac does not currently own or control any other securities of Stratic.
Upon receipt of all shareholder and regulatory approvals required in respect of Stratic, and all governmental and other third party approvals and consents required to formalize the grant of the exploration and development rights, Stratic will issue an additional 8,545,455 common shares at a deemed value of CDN$0.22 per share for the Algerian rights and an additional 19,454,545 common shares at a deemed value of CDN$0.22 per share for the Syrian rights. If all such shares are issued, Petrofac will hold 35,272,727 common shares of Stratic.
In commenting on the transaction, Stratic's President, Hugh Ross, stated
"We are pleased to formalize our strategic alliance with Petrofac and are very excited about these developments. The blocks are situated in geologically favorable positions and have tremendous exploration potential; providing Stratic with an exciting new growth area for oil and gas exploration and production opportunities. Petrofac is extremely knowledgeable about and highly respected in these regions and we anticipate our relationship with them will lead to further strategic opportunities."