CALGARY — Quick-growing Whitecap Sources Inc. says it has struck a $300-million cash-and-shares deal to purchase personal rival Kicking Horse Oil & Fuel Ltd., an oblique subsidiary of Quantum Power Companions.
The Calgary-based firm says it can problem 34.5 million Whitecap widespread shares and pay $56 million in money, whereas assuming web debt of about $54 million, within the deal anticipated to shut on the finish of Might.
Kicking Horse at present produces about 8,000 barrels of oil equal per day (32 per cent oil and liquids) however Whitecap says it expects to extend and preserve manufacturing at about 18,500 boe/d over the following 12 to fifteen months by drilling eight to 10 wells per yr on the acquired lands.
It says it plans to spend $75 million this yr to finish 4 wells and drill six extra on the Kicking Horse lands.
Whitecap lately raised its 2021 manufacturing steering to about 102,500 boe/d on a capital funds of about $290 million. It says it now expects 2021 manufacturing to common about 108,000 boe/d (76 per cent liquids) with a capital funds of about $365 million.
Whitecap accomplished its acquisitions of producers NAL Sources Ltd. and TORC Oil & Fuel Ltd. in return for shares in January and February.
“We’re extraordinarily excited to get our arms on this asset,” mentioned Whitecap CEO Grant Fagerheim on a convention name on Monday.
“This enables us to proceed to advance our footprint into the Montney play on a measured foundation. Our asset aggregation technique is deliberately centered on delivering long-term progress and free funds circulate for our shareholders and this asset matches exceptionally properly.”
This report by The Canadian Press was first revealed April 5, 2021.
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The Canadian Press