Upon closing of the transaction, Verity management will assume the key positions within Amalco and current president and CEO of Verity, John Zang, will assume the same position in Amalco.
The transaction, approved by the board of directors of the two companies, is subject various closing conditions, including Amalco completing a private placement financing of between $5m and $10m.
Proceeds of the financing will be used to implement a development drilling and optimization program on the core oil projects as well.
The newly formed company, which will focus on exploration, development and acquisition of oil and natural gas in central Alberta, will have three core producing oil projects located in Buck Lake (Pembina), Veteran (Provost) and Dewberry.
Verity engages in the exploration and development of oil and gas properties in the western Canadian sedimentary basin. It currently has three production properties in Alberta and one in British Columbia.
