The board of directors of San Diego-based Kabe Exploration rejected a tender offer to purchase the company which was made earlier this month by International Equity Partners Oil & Gas.

The offer called for Kabe shareholders to receive a two-for-one stock exchange based upon a share valuation of 15 cents per International Equity shares, which are Canadian Depository Receipts offered at $3.27 in U.S. dollars in the European private placement market, the company said.

Kabe said in a press statement that its board of directors determined the proposed acquisition offer was not a fair offer in the interest of the company and its shareholders.

“Our management team hopes to develop a great independent oil and gas concern. We will continue to work with International Equity Partners Oil & Gas in finding synergies between the two companies through joint venture partnerships for development opportunities,” said Erik Ulsteen, Kabe’s chief executive officer and chairman of the board.

The company’s stock, traded under KABE on the Over the Counter Bulletin Board, was at a penny as of July 31, giving it a market capitalization of $1.5 million, according to Yahoo Finance.

Kabe, which was incorporated in 2005, engages in the exploration and development of oil and gas properties. It holds leases in Kansas.

— Mike Allen