Marquee Energy Ltd. said Aug. 19 it entered an agreement to merge with Alberta Oilsands Inc., creating a well-capitalized company with a focused oil asset base in the Michichi area.
In the agreement, Alberta Oilsands will acquire all of Marquee's issued and outstanding common shares. The terms of the transaction weren’t disclosed.
The combined company will be known as Marquee Energy Ltd., and will provide Alberta Oilsands shareholders exposure to a dominant land position in the Michichi oil fairway, with 2,600 barrels of oil per day of production.
New Marquee will have more than 300 horizontal locations at Michichi targeting the Detrital/Banff reservoir. The company is expected to have $16 million net debt pro forma.
Marquee's shareholders will receive 1.67 shares in the capital of Alberta Oilsands for each share held. On completion, Marquee shareholders are expected to own about 49% of the new company's shares.
The company will be led by the current management team of Marquee. The board of directors will include an equal number of the current directors of Marquee and of Alberta Oilsands. The transaction is expected to close in September
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