2009-06-12-2008-12-01-2008-12-01

Acquired company with 304,644 gross acres (211,829 net) in AB, SK, MB, BC, gaining 8,820 BOE/d, 10.6 MMBOE proved.

Mining company Barrick Gold Corp., Toronto, (NYSE: ABX) has completed its acquisition of E&P Cadence Energy Inc., Calgary, (Toronto: CDS) for C$410 million in cash. The new subsidiary company will be named Barrick Energy Inc. Barrick paid C$6.75 per Cadence share, a premium of 17.4% over the July 16 closing price when the deal was announced. Barrick reported the strategy to acquire an E&P is to provide a long-term economic hedge in response to energy cost challenges facing the mining industry. Cadence production would offset about one-quarter of Barrick's annual oil consumption and a considerable portion of its natural gas consumption, according to the company. Cadence assets include oil and gas operations and 304,644 gross acres (211,829 net) in Alberta, Saskatchewan, Manitoba and British Columbia. Production as of Dec. 31 was 8,820 barrels of oil equivalent per day. Proved reserves were 13.4 million gross barrels equivalent (10.6 million net) and proved and probable reserves were 18.2 million gross barrels equivalent (14.5 million net). Some 95% of Cadence assets are in the Sturgeon Lake South Leduc oil pool in the Western Canadian Sedimentary Basin in Alberta and complement Daylight's assets in the area. Other assets include 300 barrels of oil per day in the Peace River Arch region adjacent to Daylight's Cecil/Mulligan area of operations. Cadence proved plus probable reserves are 18.2 million barrels of oil. Production is 3,600 barrels of oil per day.