Cardinal Energy announces $330M acquisition, $170M financing

pcNewsWireCardinal Energy Ltd. (TSX: CJ) has agreed to acquire high quality, low decline light oil assets in Western Canada for cash consideration of $330 million.

The acquisition will be funded with a $170 million bought deal financing and by Cardinal’s credit facilities.

The assets to be acquired are in the Weyburn/Midale area of southeast Saskatchewan and in the House Mountain area of Alberta. The Assets will add 5,000 boe/d (100% oil and NGL’s) of low decline light oil production (99% operated) that generate significant free cash flow and include a significant light oil development drilling inventory.

Cardinal has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets, and including CIBC Capital Markets, GMP First Energy, National Bank Financial Inc., Scotiabank, BMO Capital Markets, Canaccord Genuity Corp., Cormark Securities Inc., Peters and Co. Limited and TD Securities Inc., pursuant to which the Underwriters have agreed to purchase for resale to the public, on a bought deal basis, 30,910,000 subscription receipts of Cardinal at a price of $5.50 per share for gross proceeds of approximately $170 million.