Tomahawk chops out more US acreage

Tomahawk Energy has exercised its option to lift its stake in its recent successful three well drilling program – to the delight of shareholders which saw the July’s 20 cent listing threaten to tip over $1.00 in recent days.

Tomahawk came back on the boards on Friday after being suspended for a fortnight while the deal was struck and immediately roared up to 99c. It eased back slightly and today was trading at 93c at press time.

The announcement said Tomahawk would now earn a 100% working interest (71.5% after royalties) up from the original 50% working interest (37.5% after royalties).

It also said Tomahawk now had 5 separate options (at its sole discretion) to participate in 5 drilling programs each covering 1,000 acres up from 2 options of 1,000 acres each in the original agreement.

Tomahawk also said operators Metro Energy had given it an option to participate in a further 10,000 acres.

Under the terms of the deal, Tomahawk would pay $US3 million to Metro Energy. A first tranche of $US1.5million is payable by 15 October 2004 and a further 3 tranches, each of $US0.5 million, are payable on 31 December 2004, 31 March 2005 and 30 June 2005.

It will also issue 3 million shares on each occasion that Tomahawk exercises an option to participate in 1 of the 5 drilling programs of 1,000 acres, up to 15 million shares.

Tomahawk also proposed to appoint the two principals of Metro Energy, Rick Holcomb and John Leenerts to the Tomahawk board.