Independent oil and gas production & development company EnQuest PLC (LON:ENQ) said it entered an agreement to acquire the entire issued share capital of Stratic Energy Corp (TSX-V:SE LON:SE), valuing the business at approximately US$45.7 million.
Stratic shareholders will get 0.089626 EnQuest shares per Stratic share. Based on EnQuest's average closing price on the LSE between July 28 and August 2 2010, this equates to an offer of 17 Canadian cents for each existing Stratic share.
The offer price represents a 70 percent premium to Stratic's closing price on July 30 and a 9 percent premium to Stratic's three month volume weighted average price of 15.56 Canadian cents.
The deal is recommended by Stratic's board and increases EnQuest's North Sea 2P reserves by 7.27 million barrels of oil equivalent. It consolidates EnQuest's 27.7 percent position in the West Don field in the North Sea with an additional 17.25 percent working interest, estimated to increase EnQuest's production by approximately a net 900 barrels of oil per day.
It also gives EnQuest with a 19 percent interest in the Crawford field development. Further additional production will be provided when the Crawford field starts production, estimated by EnQuest to be in 2013.
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