Acquisitions
Australia
On September 30, 2008, the Company closed its purchase of an undivided 50% working interest in an
aggregate 7,000,000 acre prospect in the Northern Territory, Australia (the “
Beetaloo Basin
”) from a
related party, PetroHunter Energy Corporation (“
PetroHunter
”).
The purchase price was $25,000,000, $5,000,000 of which was paid in cash as earnest money on August
25, 2008, and $20,000,000 of which paid on September 30, 2008 in equity securities convertible into
shares on a one-for-one basis (the “
Special Warrants
”) based on the closing price of the Company’s
shares on August 22, 2008. In the event that the closing share price on the date that a receipt is issued for
the final prospectus to qualify the distribution of the common shares underlying the convertible equity
securities (the “
Receipt Date
”) is below the closing share price on August 22, 2008, the convertible
