Upon closing, Strathcona and Pipestone will be amalgamated to form a new corporation, which will continue as "Strathcona Resources Ltd." ("Strathcona")
Pipestone shareholders approve arrangement with Strathcona to create new Canadian energy leader. (Credit: John R Perry from Pixabay)
Pipestone Energy Corp. (“Pipestone” or the “Company”) announced that the Company’s shareholders (the “Shareholders”) have voted to approve the previously announced arrangement (the “Arrangement”) with Strathcona Resources Ltd. (“Strathcona”), which will see Pipestone combined with Strathcona to create one of Canada’s largest energy producers.
Upon closing, Strathcona and Pipestone will be amalgamated to form a new corporation, which will continue as “Strathcona Resources Ltd.” (“Strathcona”). The Arrangement is expected to close on October 3, 2023, subject to the receipt of a final order from the Court of King’s Bench of Alberta with respect to the Arrangement and the satisfaction or waiver of customary closing conditions.
“On behalf of Pipestone’s Board, I thank our shareholders for their participation in this process and their support for this value-creating transaction,” said Gord Ritchie, Chair of the Pipestone Board.
When completed, the Arrangement will enable Shareholders to participate in the upside of a much larger and more diversified producer with a well-positioned reserves base and much longer reserves life. The Arrangement will also provide better access to, and lower cost of, capital, an extended tax shelter, and a potential positive re-rating by markets. To read more on the benefits of the Arrangement.
Source: Company Press Release