Pearl E&P, Atlas Energy to merge

Oct. 23, 2006
Calgary independents Pearl Exploration & Production Ltd. and Atlas Energy Ltd. signed a merger agreement worth $340 million (Can.). Closing is expected in December.

By OGJ editors
HOUSTON, Oct. 23 -- Calgary independents Pearl Exploration & Production Ltd. and Atlas Energy Ltd. signed a merger agreement worth $340 million (Can.). Closing is expected in December.

Atlas is a heavy oil and natural gas exploration and development company that produces a net 5,800 boe/d. Both boards approved the combination, and Atlas Energy shareholders will vote on the merger.

Key projects of the combined company include: Mooney (heavy oil, 74% working interest), Druid (heavy oil, 100%), Unity (shallow gas, 100%), Salt Lake (heavy oil and gas, 100%), Ear Lake (heavy oil and gas, 100%), Pikes Peak (heavy oil, 100%), Onion Lake (heavy oil, 87.5%), and southern Alberta (shallow and medium gas, 88%).

Atlas has more than 260,000 net undeveloped acres (average 83.6% working interest). Other key projects include San Miguel, Tex. (heavy oil), Palo Duro, Tex. (shale gas), and Gulf of Mexico shallow-water offshore (natural gas).

The transaction is synergistic with Pearl's core assets around Onion Lake in northeastern Alberta and northwestern Saskatchewan and will allow the combined company to focus on optimizing value through low cost development, operating, and product marketing.