Canamax Energy Ltd. closed the CA$24 million acquisition of the Grande Prairie and Grimshaw producing properties in Alberta from Storm Resources Ltd., Canamax said July 15. The properties are in the Greater Grimshaw area in northwest Alberta, Canamax added.

Storm Resources said the same day, in a separate press release, that in first-quarter 2015, the properties averaged 727 barrels of oil equivalent per day (boe/d), 52% light oil and NGL.

The transaction’s effective date is July 1.

Calgary, Alberta-based Storm’s remaining Alberta asset is one property in the Valhalla area that produced 189boe/d in first-quarter 2015, 94% natural gas.

Storm will use the proceeds reduce debts, and its syndicated bank facility will be reduced to CA$140 million.

The CA$24.3 million total consideration consisted of the purchase price and about CA$0.3 million in closing adjustments.

Canamax had previously given Storm a CA$1.2 million deposit, and the remaining CA$23.1 million balance was paid on July 15. Grande Prairie and Grimshaw both produce about 750boe/d, 54% oil & NGL. There is wholly owned contiguous acreage and facilities with significant Montney oil development potential.

The acquisition was partly funded through a subscription receipts offer that was completed as part of the private placement of about 21.7 subscription receipts at 60 cents each, for about CA$13 million in proceeds.

Subscription receipt holders can receive one common share of the company for each receipt.

Also, Canamax said its lender upsized the operating loan facility to CA$21 million from CA$10 million in conjunction with the completion of the acquisition. Canamax then funded the remainder of the purchase price, after applying net proceeds from the receipts, with these facilities.

Calgary-based Canamax also said it will acquire all issued and outstanding shares of Powder Mountain Energy Ltd. The closed arrangement with Storm and the completion of the subscription receipts offering, and the private placement of flow-through shares, have satisfied two significant conditions required for the completion of the Powder arrangement.

This arrangement is subject to conditions including TSX Venture Exchange approval and approval of Powder’s shareholders.

A shareholders’ meeting to discuss the arrangement is scheduled for July 29. The arrangement is scheduled to close July 30, pending final court approval.