Sahara Energy and Mirage Energy have entered into a binding agreement to merge assets into a single larger entity.
The transaction is expected to result in Sahara having improved cash flow through significant operating synergies and general and administrative savings. It is expected that, as a result of the transaction, Sahara will have improved access to capital and a larger production and reserve base to enable future growth.
Under the terms of the agreement, it is expected that Sahara will acquire all the assets and liabilities of Mirage in exchange for common shares of Sahara. One half of one Sahara share will be issued for each common share of Mirage outstanding as of the effective date of the transaction. All the Sahara shares to be issued pursuant to the transaction will be distributed to the Mirage shareholders.