The renamed firm will have rich asset base in light oil focused resource areas, including Montney oil at Girouxville and Normandville in Alberta and Viking oil at Redwater, Alberta, and Plato, Saskatchewan as well as complementary low decline gas production in Boyer and Kaybob in Alberta.
After the completion of the transaction, Long Run Exploration will have oil and natural gas liquids consisting 50% of its total production, more than 1.8 million net acres of land, and tax pools of about $1.3bn.
The company will be led by Guide’s present management team, including William E Andrew as executive chair and CEO, and Dale A Miller as president.
For this transaction, Scotia Waterous, BMO Capital Markets and National Bank Financial are acting as financial advisors to Guide, while Cormark Securities is acting as exclusive financial advisor to WestFire.
Completion of the transaction is subject to the satisfaction of a number of conditions, including the approval of the shareholders of each of Guide and WestFire.
