June 7 (Reuters) - Gear Energy Ltd GXE.TO
* Board of Gear has approved an increase in capital budget
to $12.5 million for 2016 conditional upon completion of
arrangement
* Striker shareholders will receive, for each striker share
held, 2.325 gear common shares
* Gear's management team, led by Ingram Gillmore, president
and chief executive officer, will manage combined company
* Aggregate transaction value is approximately $63.7 million
based on bought deal financing price for gear shares
* Gear received term sheet for pro forma $50 million senior
secured revolving credit facilities to be provided on closing
* Aggregate transaction value includes assumption of net
debt of Striker of $10 million
* Sees 2016 production at 5,250 boe/d
* Combination of gear and striker provides combined company
with an additional 2,000 boe/d of 60% light and medium oil
production
* Gear Energy Ltd. announces strategic combination with
Striker Exploration Corp., a $15 million bought deal financing,
and pro forma $50 million senior secured revolving credit
facilities
Source text for Eikon: ID:nCCN10BCCg
Further company coverage: GXE.TO
(Bengaluru Newsroom: +1-646-223-8780)