Samson Canada Ltd., a subsidiary of Tulsa-based Samson Investment Co., on Wednesday said that 95.4% of the common shares of Calgary's Calahoo Petroleum Ltd. and 88.3% of the preferred shares have been tendered as a result of Samson's offer to acquire the firm. The deal was first announced in April, contingent on Samson acquiring at least two thirds of Calahoo's shares.
Samson is paying $2.90 (Can.) cash for each common share and $1.05 (Can.) for each preferred share. Samson intends to acquire all of the Calahoo common and preferred shares that have not tendered in the offer, which has been extended to 7 p.m. Calgary time on June 6.
Upon completion of the acquisition, Samson's Canadian production will total around 75 MMcfd of natural gas and 4,000 b/d of liquids, with core areas including Rainbow, Ferrybank, Rimbey, and Innisfail. The deal will significantly increase Samson's interests in the Rainbow area and achieve Samson's strategic objective of establishing a new core area in northeastern British Columbia.
Samson says it will continue growing its Canadian activities through more acquisitions and an expanded drilling program.
Samson Investment is a privately-held oil and gas company with operations in the US, Canada, Russia, and Venezuela.