Reabold Resources PLC (AIM:RBD) told investors that the shareholders of Daybreak Oil and Gas Inc have now approved an agreement, announced in October, which sees the AIM-quoted firm take an indirect 42% interest in the California oil operation.
All material conditions to the deal have now been satisfied and completion of the transaction is expected to take place this week.
The October agreement sees Daybreak Oil and Gas issue shares to Reabold in exchange for its licence interests in California, adding to its own operations.
"With material production, favourable commodity pricing dynamics and multiple organic growth opportunities available to it, Daybreak, combined with the Reabold California portfolio, is now ideally positioned to capitalise on opportunities in its core focus area of California,” said Reabold co-chief executive Sachin Oza.
"As a significant shareholder in the combined entity, we look forward to seeing the full potential of Daybreak being unlocked, with a dedicated management team with significant in-state expertise now leading the company and focused on driving growth."