Spartan buys Kinwest
Spartan's press release about the new acquisition did not mention who was on the other side of the table, but it appears to be the bankrupt Kinwest 2008 Energy Inc., or rather its receiver, Ernst & Young. Kinwest is a private company that struggled for years in southeast Saskatchewan (and southwest Manitoba, to a lesser extent) before finally launching a "strategic review" process -- code for putting itself up for sale -- in January of this year. Documents show that it owed over $28-million and was producing a little over 500 barrels a day at the time. Sadly, no suitor could be found, and Ernst & Young took control of Kinwest in May, according to a filing with the Court of Queen's Bench of Alberta. Marketing materials on the website of Peters & Co. show that Kinwest's estimated production in May was 470 barrels a day. Production will have fallen further since then, evidently to 450 barrels a day, the number given in Spartan's press release. As noted above, Spartan did not mention Kinwest, but a court document filed on July 29 states that the court has approved a "purchase and sale agreement ... between the receiver [Ernst & Young] and Spartan Energy Corp. ... for the vesting in [Spartan] of [Kinwest's] right, title and interest in and to the assets." The above seems sufficient to solve the mystery. Spartan did not return a request for confirmation before publication deadline.