Calgary independents Petrobank, Ventus plan merger
Petrobank Energy & Resources Ltd. and Ventus Energy Ltd., both of Calgary, plan to merge. A joint statement said the new company will focus its operations in Western Canada, Ecuador, and off Guinea-Bissau.
By the OGJ Online Staff
HOUSTON, July 11 -- Petrobank Energy & Resources Ltd. and Ventus Energy Ltd., both of Calgary, plan to merge to form a new company.
The arrangement provides Ventus shareholders the option of receiving $9.75 (Can.)/share (up to $100 million) or one common share of the new company/Ventus share. Each Petrobank shareholder will receive 1 share of the new company for every 4.25 Petrobank shares.
A joint statement said the new company will have three focused core areas in western Canada, with 1.1 million net acres of undeveloped land, including northwestern Alberta, central Alberta, and southeastern Saskatchewan.
It will have 35 MMcfd of gas and 10,000 b/d of liquids production.
Petrobank brings to the new company an agreement with Petroecuador to evaluate the commerciality of Pungarayacu and Oglan heavy oil fields in Ecuador's Oriente basin. It also holds a 15% working interest in three exploration blocks off Guinea-Bissau.
Ventus has recently agreed to sell its Boyer property, which produces 13 MMcfd, for $107 million. Petrobank has entered letters of intent to sell several noncore properties for more than $40 million.
Proforma net debt will be $140 million. The agreement requires regulatory and shareholder approval. Shareholder meetings are scheduled for August.