Private Oil & Gas Company, Westfire Energy, announced that it had entered into an agreement to acquire junior oil company, Exceed Energy for equity, and acquire Exceed’s assets from administrators for a cash price of C$30 million. Westfire Energy intend to then apply to list the new company on a “recognized Canadian stock exchange”, which is most likely to be either the TSX or Canadian Venture Exchange, often referred to as the TSX Venture Exchange (TSX-V).
“WestFire will be a premier publicly listed junior Viking resource player in western Canada with one of the largest land positions of any operator and guided by an experienced board of directors,” Westfire commented this morning. “WestFire will combine high growth, long life Viking light oil resources with conventional light oil, heavy oil, and natural gas assets.”
The combined entity is expected to have a 2009 exit production rate of at least 2,100 barrels of oil equivalent per day (‘boepd’), more than 7 million barrels of oil equivalent (‘boe’) of proved plus probable reserves, over 258,000 acres of land inventory and some 400 drilling locations within the Viking Resource Play - an extensive marine deposit that has been delineated by vertical wellbores – in west-central Saskatchewan and central Alberta.
The combined group will also benefit from tax pools in excess of C$260 million and good cash flow from production.
This acquisition of Exceed Energy is the 10th deal executed by Westfire in the past two years. “A major focus of this acquisition strategy was on the emerging light oil resource play in the Viking formation located in west central Saskatchewan and the Redwater area of central Alberta,” Westfire noted.