2009-08-11-2008-02-01-2008-02-01

Bought co., gaining 5.9 MMBOE in Peace River Arch. Production 2,620 BOE/d (60% gas, 80% operated); 132,000 net acres.

Galleon Energy Inc., Calgary, (Toronto: GO) has acquired ExAlta Energy Inc., Calgary, (Toronto: EXA) for some C$110 million in stock and debt assumption. ExAlta's assets include 5.9 million barrels of oil equivalent in the Peace River Arch area of Alberta. Production is approximately 2,620 barrels of oil equivalent per day (60% gas, 80% operated). ExAlta held 132,000 net acres. Galleon paid 0.118 share per ExAlta share and assumed some C$48 million in debt. The deal is valued at C$37,400 per barrel of oil equivalent and C$16.61 per proved plus probable barrel, according to Galleon. Galleon operates primarily in the Peace River Arch area. Combined, Galleon has estimated reserves of 60 million barrels equivalent. Production is approximately 20,000 barrels per day (90% operated). Upside includes more than 725 drilling locations on more than 1 million gross acres. FirstEnergy Capital Corp. was advisor to ExAlta. GMP Capital LP was advisor to Galleon.