PanTerra Resource Corp. (TSXV:PRC) has entered into an arm’s length purchase and sale agreement dated June 11, 2014 with a public Canadian oil and gas company to acquire certain natural gas assets located in Alberta and British Columbia effective as of April 1, 2014, for consideration of $120.0 million in cash, subject to adjustments. Additionally, PanTerra announced a bought-deal financing with a syndicate of underwriters for gross proceeds of roughly $100 million. Net proceeds will be put towards the purchase price of the acquisition.
As quoted in the press release:
The Assets consist of 36,918 net acres of developed land, 99,390 net acres of undeveloped land and related producing infrastructure in the foothills region of Alberta and British Columbia. The Assets are currently producing approximately 6,500 BOE per day (99.8% natural gas). The Assets provide a stable production base, an attractive decline rate of approximately 20% and a total proved plus probable Company Gross reserve base of 30.39 MMboe. In addition, PanTerra has identified approximately 30 net unrisked and unbooked drilling locations based on producing zones bypassed by previous drilling operations.