Globe & MailNice to see our SP beginning to recover. Lots of games being played in these markets. GLTA
12:08 PM EST, 03/05/2021 (MT Newswires) -- (Updates shares.)
Tamarack Valley Energy (TVE.TO) was down nearly 4% after the company on Friday said it agreed to acquire oil and gas assets and exploration lands in Alberta for C$135.3 million and will in part fund the acquisitions with a C$55 million bought-deal share offering and a royalty sale..
The company said its new properties in the Provost and Nipisi regions of Alberta produce 2,800 barrels of oil equivalent per day and include 34,800 acres of exploration lands.
"The acquisitions supplement Tamarack's existing position in the Clearwater fairway and are consistent with our returns focused strategy to enhance the sustainability and resiliency of the company's free adjusted funds flow profile with low decline oil production, long reserve life and economic oil weighted drilling inventory," chief executive Brian Schmidt said in a release.
Tamarack raised its 2021 production guidance to 26,000 barrels of oil equivalent per day from its previous 23,000 boepd target.
The company said it is also selling 24.45 million shares priced at C$2.25 each to an underwriting syndicate to fund part of its purchase. It is also raising C$13.7 million by selling a 4% gross overriding royalty on the Nipisi asset to Topaz Energy (TPZ.TO)
Tamarack shares were last seen down C$0.09 to C$2.29 on the Toronto Stock Exchange.
Price: 2.29, Change: -0.09, Percent Change: -3.78