Canadian Pure Sources Ltd. (CNRL) says it has reached a deal to amass Calgary-based oil and gasoline explorer Storm Sources Ltd. for $6.28 per share, a value that pegs Storm’s enterprise worth at $960 million.
The acquisition value represents an all-time excessive share value for Storm, in addition to a premium of 10 per cent to Storm’s 10-day volume-weighted common buying and selling value on the Toronto Inventory Alternate as of the shut of markets on Tuesday.
The deal will give CNRL entry to Storm’s present manufacturing and infrastructure within the Montney space of northeast British Columbia, the place CNRL already has operations.
READ MORE: CNRL requires workers be fully vaccinated or rapid test negative for COVID-19
CNRL says Storm’s present manufacturing within the space is roughly 136 million cubic toes per day of pure gasoline and 5,600 barrels per day of pure gasoline liquids.
As a part of the proposed deal, CNRL will assume Storm’s whole debt of roughly $186 million. The deal is anticipated to shut in December.
In August 2020, CNRL acquired one other Montney producer, Painted Pony Vitality Ltd., for $469 million.
© 2021 The Canadian Press
