Corporate M&A

Nexera Energy Acquires Hillcrest Investments’ 25% Stake in PRI

By Kunal Raj
March 11, 2021
a minute read
Oil Barrels

TSX-V listed Nexera Energy Inc. has entered into an agreement with privately-held investment management company Hillcrest Investments Ltd. to acquire its remaining 25% stake in privately-held oil & gas company Production Resources Inc. (PRI), for a total consideration of US$400,000 payable in cash and stock. Nexera Energy is the current operator of PRI and its assets. Upon completion, it will own 100% of PRI.

Under the terms of the agreement, Nexera Energy will acquire Hillcrest’s interest for a total consideration of US$400,000, which will be comprised of a cash consideration of US$100,000, and an additional US$300,000 (approximately CA$378,930) payable via the issuance of 3,789,300 Nexera common shares at a price of C$0.10 per share. In addition, PRI’s debt owing to Hillcrest Investments (amounting to US$400,000) will be terminated as part of the transaction. Hillcrest Investments currently holds a 2.6% stake in Nexera. Upon completion, Hillcrest Investment will hold a 9.08% stake in Nexera.

Texas-based PRI is engaged in exploration and production activities in South Texas, and currently owns producing wells in the Somerset and Taylor-Ina fields, and operates several properties owned by Hugo Gutierrez Jr. In addition, the company also owns extensive oilfield services equipment and two service rigs in Texas. The company has current average daily production of 50-60 barrels per day (b/d).

Calgary-based Nexera Energy (formerly Emerald Bay Energy Inc.) is the owner and operator of the LaVernia, Wooden Horse, and Nash Creek Projects in south-west Texas. Additionally, the company owns and operates various working interests in the HugoCellR, Cotulla, and MarPat partnerships. Canada-based Hillcrest Investments is a privately held investment management company owned and controlled by Clarence Wagenaar.

The transaction is subject to customary closing conditions, including final approval of the TSX Venture Exchange.

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