Pinecrest Energy Inc. (TSXV: PRY.V) and Cardinal Energy Ltd. (TO: CJ) completed the reorganization of Pinecrest’s business as part of an arrangement with Cardinal, Virginia Hills Oil Corp. and Pinecrest and its shareholders under the Alberta Business Corporations Act, Pinecrest said April 15.
About 90% of the oil and gas assets that Pinecrest owned and operated were transferred to Virginia Hills, and all of Pinecrest’s outstanding shares were sold to Cardinal, along with certain assets, for CA$23.5 million total consideration.
Virginia Hills will be entitled to an additional payment of CA$5 million in cash if, from April 16, 2015 to April 26, 2016, a front-month hedge is made available to Cardinal by one or more financial institutions, financial intermediaries or credit branches at a price of US$65 per barrel WTI for 12 months minimum.
Virginia Hills' management team will be led by Colin Witwer, president and CEO; Tracie Noble, vice president of finance and CFO; Brent Conrad, vice president of engineering and COO and Susan McNutt, manager of land.
Virginia Hills’ board of directors will consist of Witwer, John Brussa, Howard Crone, David Johnson and Robert Zakresky, all of whom, other than Witwer, are directors.
Rights issued to former Pinecrest shareholders will expire May 15, the company said.
Pinecrest Energy Inc., Cardinal Energy Ltd. and Virginia Hills Oil Corp. are both based in Calgary, Alberta.
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