(MENAFN- ProactiveInvestors) () Canada's fourth-largest independent oil producer agreed to acquire privately owned light oil producer Coral Hill Energy Ltd operating in west central Alberta.
Shareholders of Crescent Point which already owns 8.7 percent of Coral Hills' outstanding shares will receive 0.0567 of a common share of Crescent Point for each Coral Hill share and Crescent Point will also assume C$132 million of net debt the Calgary Alberta-based company said in a statement late yesterday.
Crescent Point said the deal values Coral Hill at roughly C$258 million.
The Coral Heal purchase comes just days after Crescent Point's plan to buy another Canadian light oil producer Legacy Oil + Gas LEG.TO was approved by Legacy shareholders.
"We are very pleased to have recently acquired Legacy Oil + Gas Inc and to acquire Coral Hill as they both possess a large inventory of highly economic wells with significant waterflood upside" Scott Saxberg chief executive of Crescent Point said in the statement.
Coral Hill produces around 2600 barrels per day of light oil primarily from the Swan Hills Beaverhill Lake resource play in which it already partners Crescent Point.
As a result Crescent Point has upped its 2015 production guidance to 163500 bpd. The company's capital budget remains unchanged at C$1.55 billion.
The transaction is expected to close in the middle of August.
Shares of Crescent point have lost 45 percent in the past 12 months and were trading at C$25.44 down 0.4 percent at 1:51 p.m. in Toronto.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.