Bonavista Energy to buy Alberta asset for C$155 mln

Tue Aug 28, 2012 5:02pm EDT

Aug 28 (Reuters) - Bonavista Energy Corp, a Canadian oil and gas company, has agreed to buy a natural gas-weighted asset in Alberta for about C$155 million ($157.3 million) to boost production by nearly 10 percent.

Production at the property, which is within the company's deep basin core area in west central Alberta, is about 6,700 barrels of oil equivalent per day (boe/d), most of which is natural gas, the company said.

Bonavista now expects production for the year to average between 69,500 boe/d and 70,500 boe/d, up from the previous range of 68,000 boe/d to 69,000 boe/d.

The company will fund the acquisition through a discounted bought deal with a syndicate of underwriters co-led by TD Securities Inc and CIBC World Markets Inc. The company will sell 18.2 million common shares to raise C$300.3 million.

Bonavista also increased its capital budget to C$410 million, with C$10 million earmarked for the development of newly acquired Alberta properties.

Peyto Exploration & Development Corp said in July it will buy Open Range Energy Corp in a deal valued at C$100.2 million as it vies for a larger slice of the Alberta deep basin area.

Bonavista shares closed at C$17.03 on Tuesday on the Toronto Stock Exchange.

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