Powerball didn't name the oil and gas production company but said that if completed, the transaction will result in a change in control as well as a change of business focus from the development of hydrogen generating technology to the production of oil and natural gas.

No definitive agreement has been signed, although negotiations are progressing, and Powerball expects to announce details of the transaction soon, the filing said.

Elsewhere in the filing, Powerball said it effected a 2-for-1 reverse split of its common stock Thursday. The company said it has been engaged in discussions and negotiations concerning business alternatives and a possible acquisition.

In connection with the discussions, the company said that reducing the number of its shares will enable it to have enough authorized shares for a possible acquisition.

The company's stock symbol will change to PWBL as a result of the reverse stock split, the filing said.

Prior to the reverse split, Powerball had 5.9 million shares issued and outstanding and now has about 2.95 million shares issued and outstanding, according to the filing.

Powerball is a development-stage company that has patented a technology to generate and store hydrogen as a solid at room temperature and atmospheric pressure.

-By Marc A. Wojno; Dow Jones Newswires