Nickel Oil & Gas Corp.
June 8, 2010
Southern Arc holds 15.3 million shares of Nickel Oil and Gas (I’ll call it NOG for short, formerly called Canada Nickel). This morning, a News Release described plans for NOG to be taken over by Minerva Minerals Limited (MIL on the Canadian National Stock Exchange). NOG has raised $1 million as the first tranche of a $3 million financing. This first tranche will be used to fund the drilling of a horizontal well on the Pine Creek property, targeting the Notikewin formation. In so doing, NOG will earn a 60% working interest in two sections. Crew Energy is the JV partner.
My take on this is that John Proust has engineered a reverse takeover of what amounts to a shell company with a listing. Minerva Minerals will then change its name to Nickel Oil & Gas and NOG will name four of five directors to the new board. This is something he’s done many times over the past twenty years. Saves time (up to a year), money, and process necessary to go public with NOG, and provides liquidity for SA’s 15.3 million shares. Only the market will say what those shares might be worth, but it’s a step in the right direction. I figure that by September(ish), shares of NOG will be traded publicly. Even at the price of the current financing (pre-horizontal well), namely $0.25, that amounts to $3.8 million of SA’s original investment of $5.355 million recovered. Not bad, since most had written that one off entirely. With successful drilling, maybe this can be pushed to $0.50, or a 50% gain. Whatever the case, it represents a potential source of cash to aid in funding SA operations… and that’s a good thing.
Related news releases include:
Canada Nickel Drills Successful Well And Enters Into Second Oil And Gas Option Agreement In Alberta
MINERVA ANNOUNCES PROPOSED ACQUISITION OF NICKEL OIL & GAS CORP. AND PRIVATE PLACEMENT