The Canadian PressSentinal Rock to be combined with Sundance Energy in reverse takeover
By: The Canadian Press
Posted: 01/17/2011 1:28 PM| Comments: 0| Last Modified: 01/17/2011 4:58 PM
CALGARY- Sentinel Rock Oil Inc. (TSXV:SNT) is being combined with SundanceEnergy in a reverse takeover that will create a publicly traded companywith rights to explore for oil and gas underlying First Nations landsin Saskatchewan.
Sundance will technically become asubsidiary of Sentinel Rock but Sentinel will be renamed SundanceEnergy Corp. Its holdings will include rights in the Bakken and Torquyformations in southern Saskatchewan and in the Cummings formation innorthwestern Saskatchewan
The presidentand chief executive of Sundance, Jeff Standen, will assume those rolesof the combined company. Sundance Energy is a private Calgary-basedexploration and production company, with about 48 million sharesoutstanding.
Its shareholders will receive an equal number of shares of a new entity, at a deemed value of 20 cents each or $9.6 million.
Inaddition, Sundance will arrange to raise between $8 million to $15million through a private placement of shares valued at 50 cents each.Those shares will also be exchanged for shares of the new entity.
Asa result, the new corporation will have between 68.4 million and 82.4million shares of which at least 94 per cent will be held by currentshareholders of Sundance — excluding the impact of outstanding warrantsand options.
Sentinal currently has just under 4.4million common shares outstanding but will increase to 7.45 millionafter it issues shares to settle a $610,000 debt with a companycontrolled by one of its directors, Al Kroontje.
Kroontjeis also a director of Sundance. Three other men — including RossMoulton, vice-president of exploration — are also officers or directorsof both companies.
More than half of Sentinel'sshareholders have agreed to tender their shares to the transactionunder a Dec. 22 letter of intent. The deal was announced Monday and isscheduled to close by Friday.