Oil Company Knight Metals has announced that it had completed, in trust for third parties, from December 2, 2011 (closing date), a transaction whereby it acquired Watutatu Inc., a private company based in Ontario, holding oil and gas assets in Tunisia.
Under the terms of the transaction, the Company acquired at the closing date all issued and outstanding shares of Watutatu in exchange for an aggregate of 16,000,000 common shares of the Company and 300,000 Canadian dollars (the “counterparty”).The transaction entered into escrow and the counterparty is held in trust pending the final approval of the Canadian stock exchange called TSX Venture.
In addition to the counterparty, the company is required to issue 16 million additional shares to shareholders of Watutatu after receiving a technical report (prepared in accordance with National Instrument 51-101 – publication of Oil and Gas Activities (“Rules 51-101 “)) which confirms that the drilling program on the future site of the deposit provides a potential of more than 20 million barrels in the 3P category or better.
