SYDNEY: Real Energy Corporation Limited, an Australian east coast focused gas company and Strata-X Energy Limited announced that the two companies have entered  into  a  binding  Scheme Implementation  Agreement to  pursue  a nil premium  merger whereby  Real Energy shareholders will receive one new Strata-X Energy share for three Real Energy shares that they own.

Pure Energy will hold 100% of Project Venus and benefit from the significant upside potential that this exciting project offers. As well, the merged entity’s broader asset portfolio in Australia and Botswana presents further upside. The removal of duplicate administrative functions and listing costs delivers significant cost savings to the merged entity.

Pure Energy’s Project Venus is located within the proven Walloon CSG fairway and immediately adjacent to gas pipeline infrastructure in the Surat Basin and offers relatively low risk with significant upside potential of 694 PJ of prospective gas resource.

In addition, the merged entity’s 100% owned broader asset portfolio in Australia and Botswana presents further upside potential. Pure Energy will have a total 11.8 TCF2 of Prospective Gas Resources, 770 BCF of 3C and 353 BCF of 2C Contingent Gas Resources.

The merger of Real Energy and Strata-X Energy into PureEnergy has the goal to create the next ASX energy growth stock. With the huge resources in the three gas projects and the keys to unlock those resources, this goal is achievable.

Scott Brown Managing Director of Real Energy said: “This is a compelling combination taking the best elements of both companies and having a strong portfolio of Projects with positions in both the Surat Basin and Cooper Basin, and having a significant project in Botswana together with the potential to supply gas to East Coast markets.

“Real Energy and Strata X Energy’s combined interest of 100% in the Project Venus and our broader portfolios enhances the likelihood of the merged entity becoming a meaningful gas operator in the east coast of Australia. Work on the Connor 1 re-entry on Project Venus is expected to commence in the next month, and from an operational perspective, it is business as usual while seeking shareholder approval for the merge. Pure Energy will have exposure to highly prospective and significant projects including Project Venus in the Surat Basin, the Windorah Gas Project in the Cooper Basin, and the Serowe Gas Project in Botswana and of course benefit from the opportunities that we are pursuing through Pure Hydrogen. We have lots of optionality to deliver value.”

Ron Prefontaine, Chairman of Strata-X Energy added: “It is an exciting time to be building a new company – Pure Energy, which will have a meaningful Queensland-focused gas operated business and a great position in the Botswana CSG fairway together with the exciting hydrogen initiatives”.

Mr Scott Brown, Managing Director and Mr Lan Nguyen will join the board of Pure Energy on completion.