2009-09-21-2009-06-03-2009-07-24

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
CA$111.0MM
Description

Bought company with assets in AB, gaining 2,547 BOE/d.

Insignia Energy Ltd., Calgary, (Toronto: ISN) has acquired Canadian junior E&P Grey Wolf Exploration Inc. (Toronto: GWE) for approximately C$111 million in stock. Insignia paid 0.34 share per Grey Wolf share, or C$1.14 per share. Insignia additionally assumed some C$63 million in Grey Wolf debt. Insignia shareholders own approximately 53% of the combined company. Grey Wolf assets include operations primarily in Alberta in the Doig and Montney resource plays at Peace River Arch and the Horn River shale at Petitot. Conventional operations include Slave Point at Petitot and Cardium, Viking and Mannville at Caroline. Average production for first-quarter 2009 was 2,547 barrels of oil equivalent per day. The combined company produces approximately 3,400 barrels of oil equivalent per day (85% gas) and has 7.9 million barrels of oil proved (16 million proved plus probable. It also holds more than 240,000 net acres of undeveloped land including 30 net sections of Montney/Doig lands in the Peace River Arch area of northwest Alberta. Insignia president and CEO, Jeff Newcommon, says, "The acquisition of Grey Wolf is consistent with our stated objectives of acquiring quality, long-life properties within the deep basin/Peace River Arch corridor. We believe Grey Wolf has established a significant presence in the high quality, resource rich, Montney/Doig play types and, when combined with Insignia's existing assets and opportunities, and using our financial flexibility, our plan is to capitalize on the drilling upside within the combined company." Robert Watson, Chairman and CEO of Grey Wolf, says, "The combination of Grey Wolf's high quality asset base with Insignia's clean balance sheet results in a company capable of significant growth even in the current economic environment." CIBC World Markets Inc. and Peters & Co. Ltd. were financial advisors to Grey Wolf. Cormark Securities Inc. and National Bank Financial Inc. were advisors to Insignia.