Canamax Energy Ltd. said June 15 it entered into an agreement with Powder Mountain Energy Ltd. to acquire all of its common shares for C$27.35 million (US$22.2 million) in stock.
Powder, based in Calgary, Alberta, has a 100% working interest in 5.75 sections in its core Hardy Bakken area in southeast Saskatchewan with current area production of about 100 barrels per day (bbl/d) of light Bakken oil from two recently drilled horizontal wells. In addition, Powder has a 100% working interest in 42.5 primarily contiguous sections in the Coteau Lake area, also in southeast Saskatchewan. Coteau Lake is prospective for Bakken and Torquay light oil.
The total consideration being paid is based on an attributed value of $5.85 million for Powder's existing lands, production and reserves and a working capital surplus (substantially all cash) of $21.5 million estimated on the closing date of the combination.
Before any adjustments, Canamax expects to issue about 45.583 million Canamax arrangement shares pursuant to the Powder combination. Subject to the receipt of requisite approvals and the satisfaction of certain conditions, the transaction is expected to close on or before July 31.
GMP Securities LP is exclusive financial adviser to the board of directors of Canamax, which is a Montney oil focused company based in Calgary, Alberta.
Recommended Reading
TGS, SLB to Conduct Engagement Phase 5 in GoM
2024-02-05 - TGS and SLB’s seventh program within the joint venture involves the acquisition of 157 Outer Continental Shelf blocks.
2023-2025 Subsea Tieback Round-Up
2024-02-06 - Here's a look at subsea tieback projects across the globe. The first in a two-part series, this report highlights some of the subsea tiebacks scheduled to be online by 2025.
StimStixx, Hunting Titan Partner on Well Perforation, Acidizing
2024-02-07 - The strategic partnership between StimStixx Technologies and Hunting Titan will increase well treatments and reduce costs, the companies said.
Tech Trends: Autonomous Drone Aims to Disrupt Subsea Inspection
2024-01-30 - The partners in the project are working to usher in a new era of inspection efficiencies.
Drilling Tech Rides a Wave
2024-01-30 - Can new designs, automation and aerospace inspiration boost drilling results?