Shares of Endeavor Energy Corp. (OTCBB: ENEC) slid down today after releasing news about its acquisition of Holloman came out earlier this morning. In late trading, ENEC shares were down 2 cents (2 percent) to 89 cents per share.
ENEC signed an agreement to acquire Holloman Petroleum Pty. Ltd., a privately-held Australian-based company, for approximately 18.6 million shares of common stock, which at current market prices would have a transaction value of approximately $16.5 million.
When the acquisition of Holloman Petroleum is completed, it is expected that Holloman’s assets will consist of three oil and gas permits issued by the Australian Government.
“The acquisition of Holloman Petroleum Pty. Ltd. represents a tremendous opportunity for Endeavor Energy,” said Cameron King, CEO of ENEC, in a statement. “It provides the company with a substantially larger presence in the Australian oil and gas industry and the ability to expand into more prolific areas in the future.”
Holloman Petroleum Pty. Ltd. is a majority owned subsidiary of Holloman Corporation. Holloman Corporation is a major developer of gas plants, pipelines and other infrastructure throughout the U.S.
ENEC is an Alberta, Canada based emerging oil and gas development company focusing on the exploration, acquisition and development of various oil and gas concessions around the world. The company’s current projects are located in Saskatchewan and Alberta, Canada.
