PetroBakken acquires Result Energy for C$480 million
30 Jan 2010
PetroBakken Energy Ltd., the Canadian oil and gas exploration company, said it has agreed to acquire smaller rival Result Energy Inc. for about C$480 million ($454 million), or 42 cents a share, in cash and stock to expand its presence in the Cardium light oil resource sector.
The deal is seen by analysts as the latest sign of a hot takeover market in the oil patch.
PetroBakken said the deal comprises C$200 million cash, with the remainder of the consideration to be paid in PetroBakken shares, at an assumed price of C32.25 a share.
PetroBakken said it was buying Result to expand the company's holdings from Saskatchewan into the Alberta section of what's known as the Cardium light oil region.
"We believe that our technical expertise in the Bakken will provide a strong advantage in this resource play through cost reduction, technology transfer, and reservoir exploitation," said Gregg Smith, president and chief operating officer of PetroBakken.
"This strategic acquisition is a key piece in developing our expanding Cardium light oil platform," he added.
