Cequence Energy to buy Open Range for C$97 million
(Reuters) - Cequence Energy Ltd (CQE.TO) said it will buy Open Energy Corp ONR.TO in an all-stock deal that values the oil and gas company at about C$97 million, as it looks to tap into liquids-rich natural gas assets in Alberta.
Open Range stockholders will get 1.065 shares of Cequence for each share they own.
Based on the closing price of Cequence's stock on Thursday, the offer stands at nearly C$1.30 a share -- 26 percent higher than Open Range's closing on the Toronto Stock Exchange.
Cequence said it expects the deal to add about C$57 million to its cash flow on a pro-forma basis and allow it to develop properties in the Deep Basin in west central Alberta.
The combined company is expected to produce about 11,200 barrels of oil equivalent per day (boe/d) on average in 2012 and exit the year at 15,000 boe/d.
Open Range's CEO Scott Dawson will join Cequence's board and the combined company is expected to be headed by Cequence's CEO Paul Wanklyn.
(Reporting by Abhiram Nandakumar in Bangalore; Editing by Viraj Nair)