Elk Petroleum Limited (ASX:ELK) entered into a formal purchase and sale agreement to acquire 14% stake in Madden Gas Field, the Madden Deep Unit Gas Field and the Lost Cabin Gas Plant from Freeport-McMoRan Inc. (NYSE:FCX) for $20 million on January 3, 2017. The transaction will be funded through debt financing by Elk Petroleum Limited. The transaction is subject to completion of additional due diligence for title, environmental and other customary matters. The transaction is expected to be completed by February 22, 2017 with an effective date January 1, 2017. As on March 10, 2017 consideration price revised to $17.5 million from $20 million and expected closing date to March 17, 2017 from February 22, 2017. Under the new terms, Elk Petroleum Limited has paid $2 million in January, $10 million will be on paid closing and remaining $5.5 million shall be payable by July 15, 2017. Elk Petroleum Limited has completed $10 million convertible loan to finance the payment on closing through 3 year term loan at 11% annual interest and convertible to EIK shares at AUD 0.103 per share at fixed AUD/USD exchanged rate of 0.76. The final payment is expected to be sourced from Madden project cash flow and additional external funding as required. Miro Advisors Pty Ltd. acted as financial advisor and Norton Rose Fulbright acted as legal advisor to Elk Petroleum Limited (ASX:ELK) in the transaction and the financing of Freeport-McMoRan's interest. Gray H. Muzzy, Elizabeth L. McGinley, Adam Dempsey, Hobie Temple, Tim Wilkins and Yaniv M. Maman of Bracewell LLP acted as legal advisors to Freeport. JPMorgan Chase & Co. (NYSE:JPM) and Lazard Group LLC acted financial advisor to Freeport.

Elk Petroleum Limited (ASX:ELK) completed the acquisition of 14% stake in Madden Gas Field, the Madden Deep Unit Gas Field and the Lost Cabin Gas Plant from Freeport-McMoRan Inc. (NYSE:FCX) on March 22, 2017. Elk has made $10 million acquisition closing payment to Freeport-McMoRan and remaining $5.5 million is payable by July 15, 2017.