The Toronto Stock Exchange (TSX) Venture Exchange has given conditional approval of the acquisition and it is anticipated that Ausam Energy shares should recommence trading before the end of this month under the new symbol ‘AUZ’.
Ausam Energy recently raised C$4.7 million in new capital at a price of C$0.75 and anticipates closing on a further C$2 million before the end of August.
"The TSX Venture Exchange listing now provides us with a solid public platform from which to finance our aggressive natural gas drilling plans in Queensland. The company plans to drill over 100 development and exploratory wells over the next few years and drilling is planned to commence within 60 days," said chairman and CEO of Ausam Energy Mark Avery.
Earlier this year AusAm Resources lost its exclusive farm-in rights to the Trifon tight gas project with Lakes Oil in the onshore Gippsland Basin after failing in its attempts to raise finance for the project.
Lakes reported it had lost patience with AusAm and had revoked its exclusivity and would shop around the deal.
The company had earned the exclusive right to 50% of the PEP 157 project as part of an agreement to commit up to $10 million on exploration within the areas covered by Lakes Oil's exploration permits.
Initial indications are that a recent fraccing program on the Wombat wells by Lakes has been successful in unlocking the tight gas from the Strzelecki Formation.
