Paramount Resources To Buy Alberta-Focused Redcliffe Exploration In C$69MM Deal

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
CA$68.5MM
Description

To acquire company with assets in Peace River Arch, Pembina areas of Alberta.

Paramount Resources Ltd., Calgary, (Toronto: POU) plans to acquire Redcliffe Exploration Inc., Calgary, (Toronto Venture: RXP) in a deal valued at approximately C$68.5 million.

The purchase price includes Redcliffe's net debt of approximately C$12.5 million.

Paramount and subsidiary 1534586 Alberta Ltd. will pay C$0.42 in cash per Redcliffe Class A share, representing a 31% premium to Redcliffe's closing price on May 7. Each Redcliffe Class B share will be converted into 10 shares before the company's shareholder meeting to approve the sale; after, the Class B shares will be canceled and delisted from the Toronto Venture exchange.

Redcliffe owns 127 (78 net) sections in the Peace River Arch area south of Grande Prairie, as well as 9.25 (5.75 net) sections in Pembina with Cardium potential. The company's production is focused in the Gold Creek/Wapiti area of northwestern Alberta and the Pembina area of central Alberta.

FirstEnergy Capital Corp.is financial advisor to Redcliffe.