International Petroleum Corp., Vancouver, BC, has agreed to acquire BlackPearl Resources Inc., Calgary, in an all-stock deal that would create a company with an enterprise value of $1.36 billion (US), proved plus probable reserves of 291 million boe, and production of 44,500 boe/d.
BlackPearl produced 10,600 b/d of oil in last year’s fourth quarter, mostly heavy oil in Alberta and Saskatchewan.
The production comes mainly from the company’s Onion Lake property in the Lloydminister area of Saskatchewan, where output is growing this year from thermal operations. Onion Lake also produces via cold heavy oil production with sand.
BlackPearl also has conventional production in the Mooney area of Alberta and a planned steam-assisted gravity drainage project at Blackrod in the Athabasca oil sands region of Alberta.
BlackPearl estimates its proved plus probable reserves as of yearend 2017 at 159 million boe.
In a joint press release, the companies said recent stock prices imply an acquisition price of $1.85 (Can.)/share of BlackPearl stock. Based on BlackPearl’s number of fully diluted shares, that makes the deal worth about $675 million (Can.).