TORC Oil & Gas Ltd. (
TSX: T.TOG,
Stock Forum) on Tuesday announced a $510 million acquisition of a low decline, high netback, light oil producing assets in southeast Saskatchewan and a strategic transition of the company’s business model to intermediate light oil producer, paying sustainable dividends while also delivering disciplined per share production growth,
the company said in a press release.
In conjunction with the acquisition, TORC has secured a cornerstone equity investment by the Canada Pension Plan Investment Board for $170 million through a private placement of subscription receipts.
It has also entered into an agreement for a $201 million bought deal prospectus offering of subscription receipts offered through a syndicate of underwriters for total gross proceeds of $380 million.
These announcements come after the close of trading Tuesday, when Torc shares rose 1.2% to $1.72, leaving a market cap of $332.3 million, based on 193.2 million shares outstanding. The 52-week range is $2.89 and $1.34.