Twin Butte acquires Black Shire Energy in $358 million deal
Black Shire produces about 7,000 barrels per day around Provost, Alta.
CALGARY – Twin Butte Energy Ltd. has reached a deal to buy privately-held Black Shire Energy Inc. for $358 million in cash and stock, including $107.6 million in assumed debt.
Black Shire produces about 7,000 barrels per day around Provost, Alta., which is near Twin Butte’s core existing heavy oil operations near the Alberta-Saskatchewan border.
“Black Shire is an attractive acquisition for Twin Butte in that it has demonstrated its ability to generate substantial free cash flow while developing its large and low risk horizontal drilling inventory, providing growth in production and reserves,” Twin Butte said in a release.
In connection with the acquisition, Twin Butte has also announced plans to raise $70 million in financing through a bought-deal with a syndicate of underwriters led by Peters & Co.
©The Canadian Press