Pengrowth Energy Corporation and NAL Energy Corporation Announce Strategic Business Combination

abarrelfullabarrelfull wrote on 26 Mar 2012 07:50
Tags: canada deals pengrowth upstream

Latest News

{"module":"feed\/FeedModule","params":{"src":"http:\/\/\/feed\/pages\/pagename\/blog%3A_start\/category\/blog\/limit\/10\/t\/My+Blog","limit":"3","module_body":"* %%linked_title%%"}}
  • Want a weekly review of refining news?

Pengrowth Energy Corporation ("Pengrowth") (TSX:PGF) (NYSE:PGH) and NAL Energy Corporation ("NAL") (TSX:NAE) (TSX:NAE.DB) (TSX:NAE.DB.A) (TSX:NAE.DB.B) are pleased to announce that they have entered into an arrangement agreement (the "Arrangement") that provides for the strategic combination of Pengrowth and NAL.

Under the terms of the Arrangement, NAL shareholders will receive 0.86 of a Pengrowth share for each NAL share held (the "Exchange Ratio"). Based on the March 22, 2012 closing prices on the Toronto Stock Exchange (the "TSX") of Pengrowth and NAL, the Exchange Ratio reflects a premium of 9.7% for NAL shareholders. Based on the 20-day volume-weighted average prices on the TSX of Pengrowth and NAL, the Exchange Ratio represents a premium of 11.0% for NAL shareholders. Upon completion of the Arrangement, the former NAL shareholders will own approximately 26% of Pengrowth.
Derek Evans, Pengrowth's President & CEO, said "The combination of Pengrowth and NAL represents the continued execution of our value creation strategy. The addition of the NAL assets will enhance our cash flow base and further augment our robust light oil drilling inventory. The larger inventory of high netback light oil opportunities of the combined asset base enables us to high grade our investment opportunities which should lead to improved capital efficiencies going forward. The transaction substantially improves our ability to internally fund the significant portfolio of oil-weighted development opportunities of the combined operations, including our Lindbergh SAGD project. Over the last two years, we have assembled a top-tier technical team, significantly augmenting it with the addition of Marlon McDougall, the former VP Operations and Chief Operating Officer of NAL, who joined Pengrowth as Chief Operating Officer in mid-2011. Mr. McDougall's extensive knowledge and understanding of the NAL assets will be invaluable as we integrate them with our existing asset base."

"Bringing Pengrowth and NAL together provides the combined company with greater size, liquidity and access to capital. Part of the attraction to us is Pengrowth's commitment to its dividend paying business model. This transaction provides NAL shareholders with exposure to a larger entity with an excellent portfolio of unbooked light oil development opportunities at Swan Hills and in the central Alberta Cardium play, in addition to a substantial long-term growth asset like the Lindbergh SAGD project" commented Andrew Wiswell, NAL's President & CEO.

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License