Strike to acquire Talon at $0.212 per share

The news: Strike Energy will acquire its Perth Basin joint venture partner and oil and gas explorer Talon in a scrip deal worth $133 million.

The numbers: Talon shareholders will receive 0.4828 Strike shares per unit owned, at an implied offer price of $0.212 per share. Talon is also looking at options to spin out its 33% interest in the Mongolian Gurvantes XXXV Project to shareholders. Talon shares jumped from $0.18 at Friday's close to $0.20 this morning, while Strike is holding relatively steady at $0.43.

The context: The deal comes after Strike walked away from talks with Talon in late July. The Gurvantes XXXV coal seam gas project in Mongolia covers 8,400 square kilometres and is less than 20km from the border with China and its extensive transmission and distribution network.