Daylight Resources Trust, Calgary, (Toronto: DAY) plans to acquire Athlone Energy Ltd. (Toronto Venture: ATH) for approximately C$32.8 million including C$2.6 million in debt assumption.
Daylight will pay C$0.85 per Athlone share, representing a 12% premium to the 20 day weighted average for the period ended July 10.
The deal is valued at $50,500 barrels of oil equivalent per day, and $17.90 barrel equivalent proved plus probable, according to Daylight.
Athlone holds assets adjacent to Daylight's Wildmere heavy oil core area. Proved plus probable reserves are 1.9 million barrels of oil equivalent. Production is 650 barrels of oil equivalent per day (95% heavy oil). Upside includes 17 heavy oil development locations identified.
Daylight president and chief executive Anthony Lambert says, “This is another synergistic and strategic acquisition consistent with Daylight's strategy of adding to our core development areas and maintaining a balance in the trust between low-risk oil and natural gas opportunities.”
Jennings Capital Inc. is advisor to Athlone and has provided a fairness opinion.
Recommended Reading
Permian Gas Finds Another Way to Asia
2024-04-30 - A crop of Mexican LNG facilities in development will connect U.S. producers to high-demand markets while avoiding the Panama Canal.
CERAWeek: LNG to Play Critical Role in Shell's Future, CEO Says
2024-03-19 - Sawan said LNG will continue to play a critical role adding that LNG currently makes up around 13% of gas sales but was expected to grow to around 20% in the coming 15 to 20 years.
CERAWeek: Sens. Manchin, Sullivan Say LNG Pause Needs to be Paused
2024-03-20 - U.S. Sens. Joe Manchin and Daniel Sullivan argued against the recent LNG pause announced by U.S. President Joe Biden, saying it creates doubts among allies and creates an opening for competitors as well as U.S. rival Russia.
ConocoPhillips CEO Ryan Lance Calls LNG Pause ‘Shortsighted’
2024-02-14 - ConocoPhillips chairman and CEO Ryan Lance called U.S. President Joe Biden’s recent decision to pause new applications for the export of American LNG “shortsighted in the short-term.”
US Expected to Supply 30% of LNG Demand by 2030
2024-02-23 - Shell expects the U.S. to meet around 30% of total global LNG demand by 2030, although reliance on four key basins could create midstream constraints, the energy giant revealed in its “Shell LNG Outlook 2024.”