By the OGJ Online Staff
HOUSTON, Mar. 30�Baytex Energy Ltd., Calgary, Friday announced plans to acquire Calgary-based OGY Petroleums Ltd. for $72 million (Can.) in a cash-stock deal that would increase Baytex�s Alberta reserves.
Colin Ogilvy, OGY president, said the offer would benefit his shareholders because Baytex is a larger company with a successful track record. The OGY board unanimously agreed to the tender.
Baytex said it would pay $2.90/share cash for each of OGY�s 22.33 million outstanding shares, or 0.245 Baytex share for each OGY share to a maximum of 1.2 million Baytex shares. The offer is conditional upon Baytex acquiring at least 66.66% of the OGY shares.
The $72 million includes Baytex�s assumption of $7 million worth of OGY debt. OGY agreed to pay a noncompletion fee of $3 million to Baytex under certain circumstances.
OGY has proved reserves of 1.8 million bbl of oil and natural gas liquids and 25 bcf of gas. Its average 2000 production was 946 b/d of oil and 11.7 MMcfd of gas. Current production is 900 b/d and 15 MMcfd.
OGY�s operations are concentrated in east-central Alberta, adjacent to Baytex�s core properties.