Strike Energy Ltd., which had been engaged in talks to acquired Talon Energy Ltd., said they were unable to find mutually agreeable terms, according to an Aug. 1 statement released by Strike.

Strike’s scheme of arrangement would have acquired Talon through agreed exchange ratio of 0.4828 new Strike shares per Talon share, plus the retention of the Mongolian assets by the Talon shareholders. Talon also requested the inclusion of an interim funding facility of up to $6 million to help fund Talon’s capital requirements.

However, the two parties were unable to reach terms. As a result, Strike’s board of directors have ceased engagement. However, Strike will continue to operate the Walyering L23/EP447 joint venture with Talon as part of its Perth Basin exploration, appraisal and development program.