Armada Oil Inc. (OTCBB: AOIL) and Mesa Energy Holdings Inc. (OTCBB: MSEH) announced that they have entered into a non-binding letter of intent to pursue a business combination. The closing of the business combination is subject to further due diligence, negotiation and execution of definitive agreements, as well as necessary consents and approvals. The board of directors of both Armada Oil and Mesa Energy have unanimously approved the key terms of the proposed transaction and have authorized their respective management to pursue the transaction.

The non-binding letter of intent provides ...