Terra Energy Closes C$32.2MM Acquisition Of Fortress Assets

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
32MM
Description

Acquired Square Creek field in NW Alberta, gaining 9.8MMCF/d.

Terra Energy Corp., Calgary, (Toronto: TT) has closed its acquisition of nearly all of the oil and gas assets belonging to Fortress Energy Inc., Calgary, (Toronto: FEI) in a deal worth C$32.2 million.

The purchase price comprised C$25.6 million in cash and the issuance of 3.7 million common shares of Terra at C$1.80 each.

The assets, which include the Square Creek gas field in northwest Alberta, contain proved reserves of 4.3 million barrels of oil equivalent. Production is approximately 9.9 million cubic feet of gas per day. The transaction also included 90,240 net acres of undeveloped land.

Fortress' Buick Creek and Pine Creek properties were not included in the sale. Fortress also retains its shares in two privately held biotechnology companies, Alethia Biotheraputics Inc. and Paloma Pharmaceuticals Inc.

Fortress says a portion of the proceeds was used to repay bank debt.