Privately held E&Ps Persist Oil and Gas Inc. and Dienerian Resources Inc. have entered into a definitive merger agreement described as an all-stock transaction, according to a Sept. 6 press release.
Financial terms were not disclosed.
For Persist, the deal strengthens its position as an emerging player in the southern Alberta Mannville Formation with a pro forma acreage footprint of more than 220,000 net acres, the company said. Persist’s acreage will include 60,000 net acres in the liquids-rich Montney and average production of 4,250 boe/d.
The combined company will also receive an equity infusion from Dienerian backer Siguler Guff, a private investment firm.
With Siguler Guff backing, Dienerian was formed in 2017 to develop, build infrastructure and begin delineation of its core Wild River area in the Montney. Concurrent with the combination, Siguler Guff made a preferred equity commitment of approximately CA$40 million in the pro forma combined company.
At close, Persist's executive team will lead the combined company. Siguler Guff will hold half of the seats on the board.
Mass Geremia, president and CEO of Persist, said the new partnership with Siguler Guff “could not have come at a better time.”
“The addition of Dienerian's assets and new preferred equity commitment allows Persist to accelerate its development plans and substantially increase shareholder value over the next two years," Geremia said.
Integral Capital Markets served as financial adviser and Gowling WLG served as legal adviser to Persist.
Borden Ladner Gervais LLP served as legal advisor to Dienerian. CIBC Capital Markets served as financial adviser and Stikeman Elliott LLP served as legal adviser to Siguler Guff.
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