2010-04-09-2010-03-12

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
246MM
Description

Acquired company with assets in Alberta's Cardium play, gaining 1,200 BOE/d.

PetroBakken Energy Ltd., Calgary, (Toronto: PBN) has acquired privately held, Calgary-based Rondo Petroleum Inc. for approximately C$246 million.

The purchase price for Rondo, which has assets in the west Pembina area of Alberta, included C$88.7 million in cash, C$2 million in debt and the issuance of 5.5 million shares.

PetroBakken gained proved plus probable reserves of more than 11 million barrels of oil equivalent and production of approximately 1,200 barrels of oil equivalent per day, with more than 700 barrels from the Cardium light oil fairway.

Pro forma the acquisition, PetroBakken has more than 250 gross (180 net) sections of Cardium land.

Haywood Securities Inc. was strategic advisor to Rondo.

PetroBakken president and chief operating officer Gregg Smith says, "We believe the Cardium play complements our current asset base and allows us to leverage our technical expertise gained in the Bakken and northeastern British Columbia. This acquisition provides us with strategic assets that enhance our exposure to a high quality light oil resource and provides key infrastructure to accelerate the development of our expanding Cardium platform."