By OGJ editors
HOUSTON, July 21 -- Sequoia Oil & Gas Trust plans to acquire the Alberta oil and gas assets of Dynamic Oil & Gas Inc., and Dynamic will reorganize all of its British Columbia and Saskatchewan oil and gas assets into a new exploration company, Shellbridge Oil & Gas Inc. All are Calgary firms.
Sequoia will buy Dynamic's common stock for $72.9 million (Can.) less $28.9 million in assumed benefits, liabilities, and obligations. The deal is subject to Dynamic shareholders' approval with a vote set for September 2005.
Shellbridge will have $30.9 million in assets, 750 b/d of heavy oil and 1 MMcfd of gas production, and 2.4 million boe in proved and probable reserves, 80% heavy oil and 20% gas. It will have 15 drilling opportunities in Saskatchewan and 10 in BC.