The Sonde assets are in Marquee’s core area at Michichi, Alta., and offset Marquee’s lands and production. Sonde will transfer the assets and related tax pools to a new subsidiary that will either amalgamate with a Marquee unit or be acquired directly by Marquee pursuant to a plan of arrangement.
The transaction, to close by yearend subject to various approvals, will leave Sonde to focus on its 750,000-acre license offshore Libya and Tunisia, where it is working with Joint Oil to unitize and develop giant Zarat oil field after terminating a farmout with Viking Exploration & Production Tunisia Ltd. (OGJ Online, Sept. 27, 2013).
Marquee shareholders will own 72% of the pro forma shares outstanding following the transaction. The transaction is subject to the approval of the Alberta Court of Queen’s Bench under the Business Corporations Act (Alberta), receipt of all necessary regulatory and stock exchange approvals, Sonde shareholder approval, and certain other conditions.
The acquisition will double Marquee’s production to 4,000 b/d of oil equivalent, 50% oil and liquids, and augment its land base and drilling inventory at Michichi. Marquee expects to implement a $45 million capital program for 2014 focused on its Michichi and Lloydminster core areas.
With the Sonde acquisition, Marquee has extended its position as a dominant interest holder and leader in the light oil Banff and Detrital resource play at Michichi, where the company will have more than 180 net sections of high working interest Crown lands and has identified a drilling inventory of more than 155 locations supported by geology and geophysics that management believes are low-risk.