Oil and gas company Whitecap Resources Inc. said April 5 it will acquire Kicking Horse Oil & Gas Ltd., a privately-held indirect subsidiary of Quantum Energy Partners, for CA$300 million (US$239.08 million) in a stock-and-cash deal.
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Whitecap’s indirect acquisition of Kicking Horse consists of 34.5 million Whitecap common shares and CA$56 million in cash, along with the assumption of net debt estimated at CA$54 million as of Feb. 28.
The Kicking Horse assets are positioned in the liquids-rich portion of the Alberta Montney. Whitecap says the deal complements its existing Montney position at Karr and has significant offsetting activity.
Kicking Horse’s current production is about 8,000 boe/d and is expected to increase to and maintained at 18,000–19,000 boe/d over the next 12–15 months with the drilling of eight to 10 wells per year.
The deal for Kicking Horse is expected to close on or before May 31. (US$1 = 1.2548 Canadian dollars)
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