Canbriam Energy has signed an agreement with Pacific Oil and Gas (PO&G) to sell all of its issued and outstanding shares for undisclosed sum.
Canbriam said that its board of directors has unanimously approved the transaction. The support and lock-up agreements in favor of the transaction are supported by all the officers, directors and significant shareholders of Canbriam, representing more than 90% of the outstanding Canbriam shares.
The transaction includes Canbriam’s 100% owned and operated natural gas processing plants and water handling infrastructure situated in northeast British Columbia to support natural gas export opportunities.
In addition, the acquisition is expected to develop the Canbriam’s integrated asset base Premier, which produces approximately 200million cubic feet per day of natural gas, including 6,000 barrels per day of associated natural gas liquids.
The company said that it is focused on applying technology to enhance its environmental performance including significant investments in water sourcing, distribution and recycling infrastructure to reduce trucking requirements across its operations.
PO&G president Ratnesh Bedi said: “Canada has the opportunity to become a leader in the global energy transition. Canbriam is one of the lowest cost producers in the Montney and we look forward to partnering with Paul Myers and the entire team.
“We welcome the opportunity to work in Canada and produce some of the cleanest natural gas, held to the highest environmental and technical standards in the world, and sharing that resource to offset GHG emissions around the globe.”
Subject to the satisfaction of customary closing conditions, the completion of hte transaction is expected to take place prior to 1 July 2019.
Canbriam is a private exploration and production company and its principal producing properties and acreage positions are in the Altares and Kobes Montney regions of northeast British Columbia.
Canbriam President and Chief Executive Officer Paul Myers said: “This transaction supports ongoing development of our prolific Montney assets and aligns us for future natural gas export. We warmly welcome Pacific Oil and Gas as our new owner.”
Macquarie Capital Markets Canada serves as exclusive financial advisor for PO&G and Bennett Jones serves as legal counsel, while RBC Capital Markets serves as financial advisor to Canbriam and Norton Rose Fulbright Canada serves as legal counsel.