Talon Energy’s shares have experienced a significant increase on news of their acquisition agreement with Strike (ASX:STX).

The shares of this Australian company skyrocketed by up to 14.3%, reaching a high of A$0.2.

This marks a peak not seen since November 18, 2022.

Talon announced that Strike would procure all issued shares in the former company.

Shareholders of Talon are set to receive 0.4828 of new shares in Strike for each of their holdings.

This arrangement equates to A$0.212 for each Talon share regarding the Perth Basin assets, marking a 21.4% rise compared to the closing price on Friday.

In addition to this, Talon will investigate spinning out a 33% interest in its Mongolian Gurvantes project.

Meanwhile, Strike’s shares have dipped by as much as 3.4%.

Talon Energy is an Australian company primarily engaged in the exploration of oil and gas.