Provident to acquire Maxx Petroleum

Provident Energy Trust will acquire Calgary-based Maxx Petroleum Ltd. in a $133 million (Can.) deal involving cash, stock, and assumed debt. Maxx, which put itself on the market 9 months ago because of declining stock values, has production of 8,700 boe/d, mainly in the Lloydminster heavy oil region on the Alberta-Saskatchewan border.


By an OGJ Online Correspondent


CALGARY, Mar. 28�Provident Energy Trust will acquire Calgary-based Maxx Petroleum Ltd. in a $133 million (Can.) deal involving cash, stock, and assumed debt.

Maxx, which put itself on the market 9 months ago because of declining stock values, has production of 8,700 boe/d, mainly in the Lloydminster heavy oil region on the Alberta-Saskatchewan border.

Both companies have properties in Lloydminster, southeastern Saskatchewan, and west-central Alberta. The deal will increase Provident production to 13,500 boe/d.

The $7/share offer includes a maximum cash component of $36 million. The balance is in Provident units and $14 million in debt assumption.

Maxx chairman Bruce Libin said the merger will provide Maxx shareholders with a premium to current market value for shares. Provident, an energy trust formed earlier this year, was formerly Founders Energy Ltd.

Provident CEO Tom Buchanan said Maxx is a good fit geographically.

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