Annapolis Capital Merges Portfolio Companies to form Amicus Petroleum
Calgary-based venture capital firm Annapolis Capital Ltd. has disclosed that two of its portfolio companies, Tyrannex Energy Ltd. and Tempus Energy Ltd. have merged to form a new Canada-focused E&P company. The merger closed on September 30th, 2020.
The merged entity will be named Amicus Petroleum Inc., and will focus on light oil production operations in Alberta. The company has a current production capacity of approximately 1,350 barrels of oil equivalent per day (boe/d), of which 75% is liquids.
The Amicus leadership team includes executives from both Tyrannex and Tempus, with Daniel Gundersen serving as President & CEO and Wayne Laturnas serving as Senior Vice President. Mark Poelzer, Managing Partner of Annapolis and former Chairman of the board of directors of both Tyrannex and Tempus prior to the merger, will serve as Amicus’ Executive Chairman.
“With the low decline nature of the Doe Creek waterflood asset in Valhalla providing a solid base cash flow stream, Amicus has the ability to withstand this lower pricing environment where capital spending will be muted. In a recovering oil price environment, that base cash flow and a call on additional equity from Annapolis will fund the development of underexploited portions of that asset and further drilling on our Mannville assets in southern Alberta, on which encouraging results have been achieved to date,” said Mr. Gundersen.
“We are excited to be partnered with Amicus’ talented group of individuals working from this strong platform. While both Tyrannex and Tempus had been prudently developing their asset bases, the recent downturn highlighted the benefits to be achieved by combining the two entities. Most importantly, by achieving greater scale, cost savings, and allowing the company to optimally allocate capital across a broader suite of assets, the merger will improve the financial strength and resiliency of Amicus in a weak commodity price environment and enhance its ability to deliver sustainable free cash flow as oil prices improve,” said Peter Williams, Annapolis’ Managing Partner & CEO.
Annapolis Capital invests in start-ups and early-stage private companies in the upstream oil & gas industry in Canada. The company has raised more than C$650 million in capital to date, and has made over 40 energy investments.