CNOOC to acquire Opti Canada in a $2.1 billion deal
20 Jul 2011
China's largest offshore oil producer, China National Offshore Oil Corporation (CNOOC) today said it is buying Opti Canada Inc for $34 million in cash and would assume $2.1 billion in debt, a move designed to expand its Canadian oil sands assets.
The deal includes $1.18 billion payable to holders of Opti's second lien notes, $37.5 million payable to backstop parties and the assumption of $825 million first lien notes.
Opti shareholders will receive $0.12 per share in cash or $34 million, compared with Opti Canada's last traded price of C$0.115 a share.
The deal comes just a week after the Calgary-based company had filed for bankruptcy protection after its senior bondholders agreed to a debt-for-equity swap.
Opti was founded in 1999 by Israeli energy company Ormat Industries, which had developed the OrCrude process in the 1990s. The principal assets of Opti are a 35-per cent working interest in the Long Lake oil sands reserve, which can produce 58,500 barrels of oil per day, and three other project areas located in the Athabasca region of Alberta.
The Long Lake Project is a joint venture between Opti and Calgary-based Nexen Inc, where Nexen is the sole operator of the project.
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