News: Octanex updates on loan to Peak Oil and Gas

Octanex (ASX:OXX) expects to be repaid $1.1 million that it had advanced to Peak Oil and Gas (ASX:PKO) under a loan agreement.

This follows Peak settling a dispute with Cadco in respect to a farm-in agreement for Service Contract 6 in the Philippines.

Under the settlement, Peak will transfer its interests in Peak Royalties Limited which holds certain overriding royalty rights pertaining to SC6 Cadlao to Cadco.

In return, Cadco will pay Peak about $6.7 million.

Besides allowing Peak to repay its loan to Octanex, the settlement also satisfies a condition of the scheme consideration in relation to the proposed merger between Octanex and Peak.

This would involve the issue of one Octanex share for every 24 Peak shares.