Endurance Energy Ltd. will acquire all outstanding common shares of StonePoint Energy Inc. for CA$0.078125 per share through a definitive arrangement agreement, StonePoint said July 6. The purchase price represents a premium of about 60% to the trading price of StonePoint’s shares on the TSX Venture Exchange as of July 3.

StonePoint, which works in the Valhalla area on five sections of the Montney Formation and Dunvegan area, is exploring strategic alternatives that benefit shareholders in the low oil price environment. Several corporate and asset acquisitions have been considered since the fourth quarter of 2014, the company said. The ability to acquire and develop Deep Basin and Peace River Arch assets has been impacted by the downturn. The current transaction is in the best interest of shareholders, the company said.

The plan of arrangement is under the Business Corporations Act of Alberta, subject to conditions including TSXV approval and shareholder approval.

Each of the directors and executive officers of StonePoint, and certain StonePoint shareholders, representing about 24% of the shares indicated they would vote in favor of the transaction at the special shareholders’ meeting scheduled for August.

After the transaction closes, Steven VanSickle will become president and CEO of Endurance and join its board of directors. Currently, he is chairman, president and CEO of StonePoint. Also, some members of StonePoint’s management will join Endurance’s management team.

Haywood Securities Inc. is the financial adviser for the independent special committee of StonePoint’s board of directors. Haywood provided a fairness opinion, the company added. StonePoint's board approved the transaction.

StonePoint Energy Inc. and Endurance Energy Ltd. are both based in Calgary, Alberta.