WestFire Energy Ltd T.WFE

Merger Complete

[eebler]

Merger is officially complete.

https://www.marketwire.com/press-release/westfire-energy-completes-strategic-merger-with-orion-oil-gas-creating-uniquely-positioned-tsx-wfe-1533867.htm

Major share/financial stats resulting from it. Essentially went from about 3000-3500 boe/d to 9000 overnight for a 2.5-3x jump. Shares basically doubled, but now there is more cashflow to fund drilling. The pr says that they intend to be in the range of 12000 boe/d within 18 months, so that is another >30% growth factor. Oil is off today on the result of China manufacturing slowdown, but this is now a very strong longer-term play. It will be interesting to see how the market values the company starting next week.

eebleer

WESTFIRE POST ARRANGEMENT

Pro Forma Market Capitalization (1)		$568 million
Pro Forma Shares Outstanding (2)		83 million
Pro Forma Net Debt (3)		$56 million
Pro Forma Enterprise Value		$624 million
Pro Forma Estimated Production at Closing		9,000 boe/d (60% oil and liquids)
Pro Forma P+P Reserves (4)		37.2 MMboe

Notes:

1. The market capitalization is calculated based on the June 30, 2011 WestFire share price of $6.85 and pro forma share capital.
2. Based on 67.4 million WestFire Shares and 15.6 million WestFire Non-Voting Shares at closing.
3. Net debt as at March 31, 2011 for WestFire and Orion (including transaction costs).
4. Reserves evaluated by GLJ Petroleum Consultants as at December 31, 2010, mechanically updated to March 31, 2011 for both WestFire and Orion.