Clearview Resources Ltd. ("Clearview" or the "Company") is pleased to announce the closing of an accretive acquisition:
Image: Onshore wells. Photo: courtesy of Stuart Miles/Freedigitalphotos.net.
Acquisition of Assets
Clearview has purchased certain oil and gas assets focused in its core area of west-central Alberta for total consideration of $9.5 million. The purchase price is comprised of $0.58 million in cash and the issuance of 1.37 million common shares of Clearview, at a deemed price of $6.516 per share, to the vendor. The acquisition closed on February 22, 2019 and has an effective date of July 1, 2018. The acquisition was funded from Clearview’s existing credit facility and common shares issued from treasury.
Clearview’s management believes the development potential on the lands acquired, will deliver significant, light oil weighted, growth and drive value creation for Clearview shareholders over the medium and long term.
The assets are located between Clearview’s existing core properties of Wilson Creek and Windfall along the light oil prone, deep basin trend of the Cardium and Bluesky formations. The assets are situated on 40,420 acres of land including 23,200 acres of undeveloped land. The properties are characterized by high (86%) working interests and operated production. The acquisition represents a 50% increase to Clearview’s existing undeveloped land base. January 2019 average production of the acquired assets was approximately 300 barrels of oil equivalent per day (“boe/d”) with 53% of such production being light oil and natural gas liquids.
McDaniel & Associates Consultants Ltd. (“McDaniel’s”) estimated as of June 30, 2018, the latest independent engineering report, that the proven developed producing (“PDP”) reserves of the acquired assets consisted of 837 thousand barrels of light oil and natural gas liquids and 3.2 billion cubic feet of natural gas. The present value of these PDP reserves discounted at 10% was $10.2 million based on McDaniel’s July 1, 2018 price forecast.
Source: Company Press Release