Canadian light oil producer Pinecrest Energy to acquire Spartan Oil for $428 mn
22 November 2012
Canadian light oil producer Pinecrest Energy Inc yesterday said that it will acquire Spartan Oil Corp for about C$427 million ($428 million) in order to expand its reserves in Alberta and Saskatchewan.
Under the terms of the deal, Calgary-based Pinecrest is offering 2.738 shares for each Spartan share, valuing each Spartan share at C$5.12, based on its closing price on Tuesday on the Toronto Stock Exchange.
The combination of Pinecrest and Spartan would create a premier light oil company that will have an enterprise value of nearly $1 billion and an attractive portfolio of high netback light oil projects.
Pinecrest said that post merge the combined company may operate under a different name.
Pinecrest is engaged in prospecting and producing oil and natural gas in Western Canada.
It has a significant acreage in the emerging, light oil Slave Point carbonate resource play focussed in the greater Red Earth area of north-central Alberta.