Spartan Delta buys Inception Exploration and oil and gas assets for $148 million
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Hey there, time traveller!
This article was published 16/02/2021 (2052 days ago), so information in it may no longer be current.
Calgary producer Spartan Delta Corp. says it has agreed to buy private rival Inception Exploration Ltd. and two packages of oil and gas assets in northwestern Alberta for a total of $148 million in cash and shares.
The company, founded last spring through a recapitalization of Return Energy Inc. that put in place a new management team, says it has also arranged an $80-million equity financing through National Bank Financial.
Spartan says it has agreed to issue 23.7 million common shares to Inception shareholders at a deemed price of $3.83, for a total of $90.8 million. It is also to issue a $50-million promissory note to an Inception debtholder that will be convertible to common shares two years after the deal closes.
Inception directors Steve Lowden and Elliot Weissbluth are to join the Spartan board upon completion of the acquisition.
Separately, Spartan says it has agreed to pay $22.9 million for one set of assets ($17.2 million in cash and 1.5 million shares) and about $6 million for the other package.
The additions are expected to boost Spartan’s 2021 production by 20 per cent to about 36,000 barrels of oil equivalent per day from prior guidance of about 30,000 boe/d.
“The acquisitions add a new core area in the Alberta Montney and complement Spartan’s existing core area in the Cardium and Spirit River in west-central Alberta,” said Spartan CEO Fotis Kalantzis in a news release.
“The financings further bolster Spartan’s strong balance sheet and enable further pursuit of our consolidation strategy.”
This report by The Canadian Press was first published Feb. 16, 2021.
Companies in this story: (TSXV:SDE)