Storm Resources Completes $87.9 Million Acquisition Of Montney Leasehold

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
88MM
Description

Acquired Montney acreage in the Nig area of NE British Columbia with two producing horizontal wells.

Storm Resources Ltd. (TSXV: SRX) closed its acquisition of Montney acreage in the Nig area of Northeast British Columbia from Yoho Resources Inc. (TSXV: YO) for $87.9 million, the Calgary-based companies announced Jan. 31.

Storm acquired 100% working interest in 29 sections of land in the Umbach-Nig area prospective for liquids rich natural gas from the Montney formation. Included were two horizontal wells producing from the Montney formation.

The purchase price consisted of $30 million in cash and 13.6 million common shares of Storm at $4.25 per share. Yoho applied the net cash consideration received at closing to retire all current indebtedness under its credit facility. The revised borrowing capacity under Yoho's credit facilities will total $50 million.