Seaview, Charger, Silverback, Sirius To Fuse Into Alberta-Focused Entity

To merge with 3 companies with assets east-central & NW AB, gaining combined 3,800 BOE/d & 19.3 MMBOE 2P.

Seaview Energy Inc., Calgary, (Toronto Venture: CVU-A) plans to merge with Charger Energy Corp., Silverback Energy Ltd. and Sirius Energy Inc. for C$138 million in stock.

Seaview will issued 3.6364 per Charger share for approximately C$72.5 million, 5.8182 Seaview shares per Silverback share for a total C$54.4 million and 0.80 Seaview share per Sirius share for approximately C$11.1 million.

The combined entity will have an undeveloped land inventory of 120,000 net acres and 230,000 net acres of farm-in or option lands that includes Viking, Pekisko, Mannville and Cardium opportunities in the Halkirk/Provost and Ghost Pine areas of east-central Alberta and the Wapiti area of northwestern Alberta.

Estimated pro forma production for December 2011 is 3,500 to 3,800 barrels of oil equivalent per day. Proved and probable reserves of the combined entity as of Sept. 30 were 19.3 million barrels equivalent (57% proved).

The resulting entity will be led by the existing management team from Charger with Tom Buchanan as chairman and CEO, Dan O'Byrne as president, Mark Walker as chief financial officer, Kelly Cowan as vice president, corporate development and land and John Milford as vice president, exploration and development.

Seaview president and chief executive Michael Wuetherick says, “This transaction achieves several strategic long term goals which will immediately benefit the shareholders of Seaview as well as Charger, Silverback and Sirius. Specifically, this transaction creates an entity with greater financial flexibility to support profitable growth from a portfolio of quality light oil resource plays.”

National Bank Financial Inc. is financial advisor to both Seaview and Sirius. GMP Securities LP is financial advisor to Charger. Canaccord Genuity Corp. is financial advisor to Silverback.