ORLEN Upstream Canada to Acquire Kicking Horse Energy

- October 13th, 2015

Kicking Horse Energy (TSXV:KCK) and ORLEN Upstream Canada announced that they have entered into a definitive agreement to which ORLEN will acquired all of the outstanding common shares of Kicking Horse for C$4.75 per share.

Kicking Horse Energy (TSXV:KCK) and ORLEN Upstream Canada announced that they have entered into a definitive agreement to which ORLEN will acquired all of the outstanding common shares of Kicking Horse for C$4.75 per share.
As quoted in the press release:

The transaction is to be completed by way of a plan of arrangement under the Business Corporations Act (Alberta) (the “Arrangement”). The consideration payable pursuant to the Arrangement represents a 47% premium to the most recent closing price of Kicking Horse’s common shares on the TSX-V and a 60% premium to the 20 day volume weighted average trading price of Kicking Horse’s common shares for the period ended October 9, 2015, being a total equity purchase price of C$293 million.
The total transaction value, including the assumption of Kicking Horse’s current net debt and amounts to be paid under the Arrangement to retire in-the-money Kicking Horse options, is approximately C$356 million. The acquisition of Kicking Horse aligns with PKN ORLEN’s strategy of investing in attractive, low-risk jurisdictions such as Canada and expands ORLEN Upstream Canada’s Canadian asset portfolio allowing it to leverage its Canadian corporate office and executive team based in Calgary, Alberta.
ORLEN Upstream Canada originally established its Canadian operations in 2013 through the acquisition of TriOil Resources Ltd. and since then has continued to grow its production and reserve base via further investment. Today it holds significant land positions across the Cardium, Dunvegan and Montney formations with current production volumes of 7,000 boe/d and a 2P reserve base of approximately 50 million boe.

Steve Harding, president and CEO of Kicking Horse, commented:

This transaction crystalizes the significant value created by Kicking Horse, in its East Kakwa property, and its other Deep Basin and Canadian assets, through more than five years of successful land acquisition, exploration and development activities. Furthermore, it provides cash liquidity for all Kicking Horse shareholders at an attractive premium, and eliminates downside risk for our shareholders in a market that continues to be capital constrained and subject to significant commodity price uncertainty.

Click here to read the full Kicking Horse Energy (TSXV:KCK) press release.

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