"The acquisition will be accomplished through a plan of arrangement (the "Arrangement") wherein each Reece share will be exchanged for 0.125 of a Penn West trust unit. Including the assumption of Reece's debt, the total acquisition cost is expected to be approximately $92.2 million."
Release(.pdf)
Reece has a working capital deficiency and basically no hedges so the acquisition is some what expected. Penn West is offering 0.125 trust units for every RXR share, which equates to value of C$1.20 per share. This is a crappy deal for Reece shareholders, but there aren't any alternatives available.
Painted Pony Petroleum and Ryland Oil are the last Bakken focused public Canadian juniors and both are very likely acquisition targets. If I remember correctly Shelter Bay, a private company controlled by Crescent Point Energy Trust has a shareholding in PPP.
No comments:
Post a Comment