Park Place Energy Inc. previously announced it had entered into an agreement to purchase three oil and gas exploration and production companies operating in Turkey. The "Tiway Companies" own interests in three producing oil and gas fields, one offshore and two onshore.
The Company and the seller have now agreed to extend the purchase contract up to December 15, 2016. The Company has initiated a private placement to raise the funds to complete the purchase; it is anticipated the private placement will close in the next 20-30 days. The purchase price of the acquisition is $2.1 million. Park Place paid a deposit of $500,000 when the agreement was signed. The effective date of the purchase is January 1, 2016. Closing of the transaction is conditional on Park Place obtaining approvals from two Turkish regulatory agencies. One of the approvals has been received; the other approval is pending. Park Place expects to close the acquisition following receipt of the second approval. The Company believes the delay in obtaining the second approval is attributed, in part or in whole, to the Turkish Government declared State of Emergency which expires later this month. However, recent public announcements suggest the State of Emergency will be extended another three months into January 2017.
Source: Park Place Energy Inc.
Date: Oct 11, 2016