Petro Viking Energy Acquires Avila Energy’s Assets in Alberta
CSE-listed Petro Viking Energy Inc. has entered into an agreement with privately-held Avila Exploration & Development Canada Ltd. (Avila Energy) to acquire 100% of its interests in 53,835 gross acres of mineral rights, as well as associated wells, pipelines and facilities located in west-central Alberta, for a total purchase price of approximately C$50.7 million payable in stock.
Under the terms of the deal, the total purchase price of approximately C$50.7 million is comprised of a stock consideration of approximately C$24.3 million, payable by way of issuance of 40,440,000 Class A common shares of Petro Viking at a deemed price C$0.60 per share, and an additional 30,000,000 convertible preferred shares, convertible at a price of C$0.80 per share. Prior to closing the transaction, Petro Viking Energy will seek approval to formally change its name to ‘Avila Energy,’ and to appoint Leonard B. Van Betuw (who is currently the President & CEO of Avila Energy) as a Director, and as the President & CEO of the company.
The assets acquired include a 100% interest in 53,835 gross (43,935 net) acres of mineral rights in west-central Alberta, targeting multiple prospective geological locations including the Belly River, Spirit River (Rex) Mannville, Ellerslie, Wabamum, and Duvernay formations. The assets contain 150 identified drilling locations, with 50 productive wells, more than 200 km of pipelines, and three facilities. As of June 1, 2021, total proved (1P) reserves attributable to the assets were approximately 15.3 million barrels of oil equivalent (MMboe), with total proved plus probable (2P) reserves of approximately 28 MMboe. The estimated average daily production at closing will be approximately 2,000 barrels of oil equivalent per day (boe/d).
“The multiple horizons of proven prospective geological zones, installed pipelines and facilities are now converging on a plan for becoming a full cycle economic dynamo for carbon neutral energy production,” said Daniel Lucero, Director of Petro Viking Energy.
Calgary-based Petro Viking Energy is engaged in the exploration, development, and the production of petroleum and natural gas assets in Canada.
Avila Energy is engaged in the exploration and production of developed and undeveloped lands, with a primary focus on the Western Canadian Sedimentary basin in Alberta, British Columbia, and Saskatchewan.
The transaction is subject to the execution of a comprehensive purchase and sale agreement for the assets, shareholder approval, as well as an approval by the CSE. The transaction is expected to close on or before October 31, 2021.