Corporate M&A

Cardinal Energy Acquires Venturion Oil

By Isha Makkar
June 01, 2021
a minute read
Block Energy Georgia Rig

TSX-listed Cardinal Energy Ltd. has entered into an arrangement agreement to acquire 100% of the issued share capital of privately-held Venturion Oil Ltd., for a total purchase price of C$47.5 million, payable in cash, stock, and the assumption of debt. Venturion Oil’s assets consist of oil and natural gas producing properties focused in central Alberta, with majority of the assets located within Cardinal’s Wainwright operating area.

Under the terms of the deal, the total consideration of C$47.5 million will be comprised of an initial cash consideration of C$27.9 million, plus additional stock consideration of approximately C$19.6 million.

Venturion Oil is engaged in the acquisition, exploration, development, and production of oil and gas properties in central Alberta. As of July 1st, 2021, the company reported total proved (1P) reserves of approximately 7.5 million barrels of oil equivalent (MMboe). Current average daily production stands at approximately 2,400 barrels of oil equivalent per day (boe/d), of which approximately 84% is oil. Pro forma, the combined entity will have estimated average daily production of approximately 21,500 boe/d during Q4-2021.

Calgary-based Cardinal Energy is currently focused on low decline, light and medium quality oil and natural gas assets in Alberta and Saskatchewan.

Peters & Co. is acted as strategic advisor to Cardinal Energy for the deal.

The transaction is subject to customary closing conditions, including TSX and Venturion Oil shareholder approval, and is expected to close on or before July 15th.

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