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Bullboard - Stock Discussion Forum CGX Energy Inc V.OYL

Alternate Symbol(s):  CGXEF

CGX Energy Inc. is a Canada-based oil and gas exploration company. It is focused on the exploration of oil in the Guyana-Suriname Basin and the development of a deep-water port in Berbice, Guyana. The Company, through one of its subsidiaries, holds an interest in a Petroleum Prospecting Licence (PPL) and related Petroleum Agreement (PA) on the Corentyne block in the Guyana Basin, offshore... see more

TSXV:OYL - Post Discussion

CGX Energy Inc > Big Merger in oil & Gas Canadian space WhiteCap and Torc Oil
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Post by Windyhill on Dec 09, 2020 6:16am

Big Merger in oil & Gas Canadian space WhiteCap and Torc Oil

M&A starting in Canada in an all stock swap deal. 
TORC ("TORC Shareholders") will receive 0.57 Whitecap common shares (the "Whitecap Shares") in exchange for each TORC common share held (the "TORC Shares"). The at market exchange ratio was determined using ten-day volume weighted average share prices of the Whitecap Shares and the TORC Shares on the Toronto Stock Exchange ("TSX") prior to the signing of the Agreement.

CALGARY, AB Dec. 8, 2020 /CNW/ - Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX: WCP) and TORC Oil & Gas Ltd. ("TORC") (TSX: TOG) are pleased to announce a business combination (the "Business Combination") of two strong energy franchises resulting in a well-capitalized, low decline, light oil weighted company with an attractive free funds flow profile. 

Whitecap and TORC have entered into a business combination agreement (the "Agreement") under which the companies have agreed to combine their businesses in an at market, all-stock transaction valued at approximately $900 million , including TORC's net debt, estimated at $335 million as of December 31, 2020 . Under the terms of the Agreement, shareholders of TORC ("TORC Shareholders") will receive 0.57 Whitecap common shares (the "Whitecap Shares") in exchange for each TORC common share held (the "TORC Shares"). The at market exchange ratio was determined using ten-day volume weighted average share prices of the Whitecap Shares and the TORC Shares on the Toronto Stock Exchange ("TSX") prior to the signing of the Agreement.

Comment by westcanpride on Dec 09, 2020 10:11am
Let's have a look at this deal (though I am sure some might think I am being too negtive again lol). Before opening bell, TORC had a market cap of $549.8M CAD (~$429M USD). They also had debt of $335M. So in essence, Whitecap paid 0% premium for ~25,000 barrels of oil equivalent (~90% of this production is actual oil). The total cost per flowing barrel: $36,000 (~$28,000 USD). Assuming a ...more  
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