Privately held, Calgary-based Sun Century Petroleum Corp. has offered a rival bid to acquire Masters Energy Inc., Calgary, (Toronto: MSY) in a deal valued at approximately C$28.5 million in cash.
Sun Century will offer C$1.85 per Masters shares. Masters had approximately 15.4 million shares outstanding at year-end 2008.
Zargon Energy Trust, Calgary, (Toronto: ZAR-UN) made a bid to acquire Masters for C$1.83 per share on March 2, plus assume C$13.2 million in debt in a deal valued at C$41.4 million.
Sun Century says its bid is a 54% premium to Masters’ Feb. 26 closing price, the last trading day before the Zargon offer. Sun Century reports Zargon’s assets are primarily gas-weighted with only a portion of production hedged. The company adds that its offer is superior because it gives Masters shareholders full liquidity, whereas the Zargon offer will only grant limited liquidity due to the bid granting Masters’ shareholders up to 1.49 million Zargon trust units. Sun Century says that only 12% of Zargon trust units were traded on the open market between Jan. 1 and March 31.
Masters has assets on 32,600 net acres in northern, central and southern Alberta in the Little Bow and North Peace River Arch areas. Production as of Dec. 31 was approximately 1,300 barrels of oil equivalent per day. Proved reserves as of Dec. 31 were 2.5 million barrels equivalent, and proved and probable reserves were 7.3 million barrels equivalent.
Masters had previously planned to discuss the Zargon offer during a special meeting on April 28.
Peters & Co. Ltd. is financial advisor to Sun Century.
Recommended Reading
Bakken EOR Trial Increased Output by 25%
2023-01-10 - Liberty Resources' pilot project shows alternating produced gas with water/surfactant EOR mix boosts production and cuts costs in the Bakken Shale.
Testing the Waters: New Tech Aims to Clean Oilfield's Produced H2O
2023-01-23 - From nanoparticles to air bubbles, the University of Texas Permian Basin’s Texas Water and Energy Institute is analyzing data to potentially find a home for water produced during oil production.
Innovation at Forefront of 2023 SPE HyFrac Conference
2023-02-03 - Engineers from different corporations gathered during the HFTC Plenary Session to discuss different approaches to fracking, including the benefits of fiber optics and geothermal fracking.
Tieback Bounce-back: Subsea Market on the Rise
2023-02-07 - After an economic downturn and rough period with COVID-19, the market for subsea tiebacks looks to grow stronger than ever.
Raising the Bar for ROV Operator Performance by Lowering the Bar for Entry
2023-01-31 - Technology companies Greensea and Blue Ring’s partnership helps ROV operators become situationally aware without having to “context switch” from task to task.