Tidewater Midstream and Infrastructure Ltd. entered an agreement with private company vendors to acquire their 63% operated working interest in a gas processing facility and pipelines in the West Pembina area of central Alberta for CA$180 million, the company said June 16.
The purchase price is comprised of CA$170 million in cash and CA$10 million in common shares priced at CA$1.35 each. The acquisition is scheduled to close July 3 and is subject to standard closing conditions including TSX Venture Exchange approval, the company said.
Tidewater closed the private placement of about 155.5 million subscription receipts, priced at CA$1.35 each, for about CA$210 million in gross proceeds, the company said.
Each receipt gives the holder one Tidewater common share when the West Pembina acquisition closes, the company said. Gross proceeds from the receipts’ sale will be held in escrow by a subscription receipt agent and invested in short term obligations issued or guaranteed by the Canadian government when all conditions are met.
The receipt offering was co-led by CIBC World Markets Inc. and Macquarie Capital Markets Canada Ltd. National Bank Financial Inc., FirstEnergy Capital Corp., GMP Securities LP, Canaccord Genuity Corp., Acumen Capital Financial Partners Ltd., Beacon Securities Ltd., Desjardins Securities Inc. and EdgeCrest Capital Corp. were the underwriters. They exercised their option to purchase about CA$50 million of additional receipts, Tidewater said.
Closing of the offering is subject to TSX Venture Exchange approval. The securities offered will have a hold period until October 17.
Tidewater Midstream and Infrastructure Ltd. is based in Calgary, Alberta.
Recommended Reading
US Drillers Cut Oil, Gas Rigs for Second Week in a Row
2024-09-27 - The oil and gas rig count fell by 1 to 587 in the week to Sept. 27, the lowest since early September.
US Drillers Add Oil, Gas Rigs for First Time in Five Weeks
2024-09-13 - The oil and gas rig count rose by eight in the week to Sept. 13 to 590, returning to mid-June levels. The increase was the biggest since the week to Sept. 15, 2023.
US Oil, Gas Rig Count Holds Steady for Record Third Week
2024-11-08 - The oil and gas rig count was steady at 585 in the week to Nov. 8, Baker Hughes said on Nov. 8. Baker Hughes said that puts the total rig count down 31 rigs, or 5% below this time last year.
US Drillers Cut Oil, Gas Rigs for Third Week in a Row
2024-10-04 - The oil and gas rig count fell by two to 585 in the week to Oct. 4.
US Drillers Add Oil, Gas Rigs for First Time in Four Weeks
2024-10-11 - The oil and gas rig count rose by one to 586 in the week to Oct. 11. Baker Hughes said the total count was still down 36 rigs or 6% from this time last year.