Canada’s ARC Energy Trust to acquire Storm Exploration for $652 million
10 Jun 2010
ARC Energy Trust, the Canadian investor and acquirer in energy related assets, yesterday agreed to buy Storm Exploration Inc, an explorer and developer of oil and natural gas for C$680 million ($652 million).
Calgary, Alberta-based and listed on the Toronto Stock Exchange, Storm Exploration is a junior oil and gas exploration development and production company that focuses in the provinces of Alberta and British Columbia in Canada.
The company owns interests in the Parkland / Ft St.John, northeast British Columbia, Horn River Basin in northeast British Columbia and Grand Prairie in northwest Alberta.
As of 31December 2009, it had proved producing reserves of approximately 12.55 million barrels of oil equivalent.
Under the deal, each Storm shareholder can elect to receive either 0.5700 of an ARC unit or, subject to adjustment, 0.2021 of an ARC Resources exchangeable share.
Storm shareholder will also receive shares in a new, separate junior exploration and production company (ExploreCo) and approximately $1.00 per share from the proceeds of the sale of its Surmont asset to a separate buyer that is expected to close today.
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