By OGJ editors
HOUSTON, June 26 -- Compton Petroleum Corp. plans to buy Stylus Energy Inc. for $91 million (Can.), or $2.70/share, including the assumption of $12 million in net debt. Both companies are based in Calgary.
The boards of Compton and Stylus have unanimously approved the transaction, which remains subject to certain conditions including approval by two thirds of Stylus shareholders. The acquisition is expected to be completed by Aug. 15, subject to regulatory approvals. Stylus, which has oil and natural gas operations in Alberta, will pay Compton $2 million if the deal does not close.
As of June 1, Stylus reported 2,677 million boe of proved reserves, 4,038 million boe of proved plus probable reserves, and production of 2,000 boe/d.
