Tamarack Valley Energy Ltd. (TSX: TVE) announced this morning the definitive agreement to acquire privately-held Clearwater oil producer Crestwynd Exploration. The acquisition price is reported to be for a total consideration of $184.7 million.
According to the agreement, the transaction cost consists of $92.6 million in cash and the issuance of 26.3 million company shares valued at $3.50 per share.
The acquisition yields to a 2022 forecast production of approximately 4,500 boe/d, expecting an operating netback of $90 million.
According to the energy firm, the move “consolidates Tamarack’s existing Southern Clearwater working interest to 95%.” Pro forma the acquisition, there are over 650 net future drilling locations expected, anticipating an average 2022 production from Clearwater of approximately 12,000 boe/d.
The company also highlighted minimal asset retirement obligation and limited freshwater requirements as a few of the environmental benefits of the acquisition.
In connection with the acquisition, lead syndicate National Bank Financial provided commitments for a separate and additional $100 million credit facility.
Tamarack Valley last traded at $3.40 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
