Kelt Exploration Ltd. (TO: KEL) acquired all the issued and outstanding common shares of Artek Exploration Ltd. (TO: RTK) in a plan of arrangement between the companies and Artek shareholders, Kelt said April 16. Under the arrangement, most of Kelt's acreage in its Inga-Fireweed-Stoddart, British Columbia, core area was consolidated.

Additionally, Kelt's acquisition of Artek resulted in Kelt owning all key infrastructure in the area, including compression facilities and pipelines. The net present value of Artek's Inga-Fireweed-Stoddart reserves at Dec. 31, 2014, represented about 90% of Artek's total corporate reserves value.

A majority greater than 99.9% of Artek shareholders approved the arrangement, Kelt said. The arrangement was also approved by the Court of Queen's Bench of Alberta.

Artek shareholders received 0.34 of a common share of Kelt for each Artek share held. Thus, an aggregate of 26.9 million Kelt shares were issued. Artek Shares will probably be de-listed from trading on the Toronto Stock Exchange, Kelt added.

Artek became a wholly owned subsidiary of Kelt. The name Artek Exploration Ltd. was changed to Kelt Exploration (LNG) Ltd. Kelt transferred all of its British Columbia assets to Kelt LNG. Kelt LNG transferred all of its Alberta assets to Kelt. Kelt LNG will operate in British Columbia.

Following the arrangement’s closing, Kelt increased its existing revolving committed term credit facility to CA$300 million from CA$250 million.

A syndicate of financial institutions increased the facility.

The bank debt, net of working capital, on Dec. 31, 2015 is expected to be about CA$198.0 million, or 66% of borrowing capacity.

Peters & Co. Ltd. was Artek’s exclusive financial adviser.

Calgary, Alberta-based Kelt Exploration Ltd. develops and produces crude oil and natural gas in west-central Alberta and northeastern British Columbia.