Auburn to acquire Spirit Energy Ltd.
By the OGJ Online Staff
HOUSTON, Apr. 2�Auburn Energy Ltd. has agreed to acquire the outstanding shares of Spirit Energy Ltd., a private Alberta corporation, for $3 million (Can.), said Auburn parent company TUSK Energy Inc., Calgary.
"The board of directors of Spirit has unanimously approved the offer, has determined unanimously that the offer is fair to the Spirit shareholders, and has determined unanimously to recommend that Spirit shareholders accept the offer," said TUSK.
Spirit owns a 10% interest in 14 producing and shut-in gas wells on Saddle Lake First Nation; a 10% interest in 2 shut-in gas wells on the Whitefish Lake First Nation; and rights to participate, through Auburn, in joint venture arrangements with the Saddle Lake, Whitefish Lake, and Alexis First Nations.
Through the acquisition of Spirit, TUSK will increase its participation in the joint venture arrangements in these three areas by 25%.
Auburn and Spirit currently produce gas from 10 wells at Saddle Lake. Four additional gas wells at Saddle Lake will come on stream in the second quarter, boosting Spirit's production to 500 Mcfd from 280 Mcfd.