GMT Capital to invest up to $30 mln in Strategic Oil & Gas

U.S. hedge fund manager GMT Capital Corp has agreed on a non-binding basis to invest up to $30 million more in Strategic Oil & Gas Ltd (TSX-V: SOG), a Calgary-based oil and gas company. As part of the recapitalization deal, GMT will also settle its existing convertible debentures of Strategic by way of a shares-for-debt agreement. Certain other holders of convertible debentures have agreed to do the same. The transaction accounts for about $111 million, or 96 percent, of outstanding debentures. Strategic said the proceeds of the GMT investment will be used to meet asset retirement obligations and advance its Muskeg oil play in Marlowe, Alberta.

DealsCanadaNorth AmericaBriefs