another buyout in pembina
PetroBakken buys private Pembina oilco for $251.4 million in cash and shares
Tue Mar 2, 9:36 AM
The Canadian Press
By The Canadian Press
CALGARY - PetroBakken Energy Ltd. (TSX: PBN.TO) is again growing its presence in the oil-rich Pembina region of western Alberta with the purchase of an unnamed private oil and gas company for $251.4 million.
The Calgary-based company said it will pay $88.7 million cash and 5.7 million PetroBakken common shares worth about $162.7 million for the company, which has assets in the west Pembina Cardium oil area. The deal comes after PetroBakken acquired another Cardium-focused oil junior, Result Energy Inc., for about $480 million in January.
PetroBakken will also assume about $2 million worth of the private company's debt.
"We believe the Cardium play complements our current asset base and allows us to leverage our technical expertise gained in the Bakken and northeast British Columbia," president and chief operating officer Gregg Smith said in a statement.
"This acquisition provides us with strategic assets that enhance our exposure to a high quality light oil resource and provides key infrastructure to accelerate the development of our expanding Cardium platform."
The deal is expected to close before the end of April.
The Cardium region, which stretches across west-central Alberta, is the country's largest conventional oilfield. It was first discovered in 1953, but recent techniques like horizontal drilling have helped boost production there.