Angle Energy Inc., an oil and gas company with many well sites in the region and across the province, has recently signed on to an agreement that will allow Bellatrix Exploration, a West Central Alberta-based petroleum company, to acquire it and its assets, according to officials.
The deal, which is worth about $576 million, will transfer all of Angle's assets to Bellatrix. Both companies run their operations out of Calgary.
Bellatrix officials also said the company has recently formed a $240-million joint venture with South Korea's Troika Resources Private Equity Fund to drill and develop oil and gas properties in the Ferrier-Cardium play of West Central Alberta.
The Korean fund will contribute $120 million to the joint venture, which is expected to drill 63 wells in the play by the end of 2014.
Angle CEO Gregg Fischbuch said the move will benefit shareholders, and is the best option that was available to the company.
“(It) is the successful result of a comprehensive review of strategic alternatives available to Angle, announced in July,” said Fischbuch.
“This complementary transaction creates one of the largest Cardium producers and landholders in Alberta and provides Angle shareholders an attractive price, with significantly enhanced liquidity and the opportunity for ongoing participation in a larger and well-capitalized combined company.”
Officials believe the move will benefit both consumers and shareholders, by combining both management and operations of two successful companies.
Along with the assets and employees, Bellatrix will also be taking on about $185 million in debt from Angle, and will be paying out Angle shareholders with a choice of either $3.85 or 0.4734 worth of Bellatrix shares per Angle share held.
At the time the agreement was signed, Angle had a total estimated value of $576 million with current production of 10,500 barrels of oil per day equivalent; 32.7 million barrels of oil equivalent in proved reserves; 60.9 million barrels of oil equivalent in proved plus probable reserves; and 15.9 years proved plus probable reserve life index.
Angle also currently has 500 drilling locations and 228,250 net acres of undeveloped land.
Once combined, Bellatrix will be one of the largest petroleum producers in the Cardium and lower Manville areas, which are some of the largest oil and gas reserves in Alberta.
The Cardium oil reserve is believed to have formed during the late Cretaceous period, and is located through much of western and central Alberta, including Mountain View County and Red Deer County.
The Lower Mannville area is located in Central Alberta and rests on Paleozoic carbonates.
Currently, Angle's main production areas are near Harmattan and Edson but the company also has well sites near Didsbury.
Angle has horizontal wells and uses hydraulic fracturing in some of its operations.
Angle and Bellatrix shareholders, and along with Angle debenture holders, will be meeting to vote on the proposed deal and related matters in mid-December, say officials.
