By OGJ editors
HOUSTON, May 23 -- TriStar Oil & Gas Ltd. and Real Resources Inc. agreed to merge, and the resulting new company is projected to produce 15,250 boe/d by Dec. 31. Production would be 60% light crude oil and 40% natural gas.
The combined company would have proved and probable base reserves of more than 49 million boe. It will operate under the TriStar name, now the smaller of the two companies.
TriStar's exploration and production operations are in southeast Saskatchewan and south-central Alberta. Real Resources also produces oil and gas in Western Canada. Both companies are based in Calgary.
Closing is expected in August. The merger remains subject to regulatory approval and the approval by a majority of at least two thirds of shareholders of both TriStar and Real. The boards of both companies already unanimously approved the transaction.
Terms call for each TriStar shareholder to receive 0.4762 share of new TriStar stock for each share of TriStar already held. Each Real shareholder will continue to hold one share of new TriStar for each share of Real stock already held. The transaction will be accomplished on a tax-deferred basis in Canada.
TriStar shareholders will own 42% of the resulting company while Real shareholders will will own 58%. The board will be comprised of 10 members including seven representatives from TriStar and three representatives from Real.