Sprott to sell oil unit to Twin Butte for C$134 mln

Sept 4 Tue Sep 4, 2012 8:57am EDT

Sept 4 (Reuters) - Sprott Resource Corp will sell its oil unit Waseca Energy Inc to Twin Butte Energy Ltd for C$134.5 million ($136.24 million).

Sprott Resource, which invests and operates through subsidiaries in the natural resources sector, said last year it was considering a sale of the unit as part of a strategic review.

The deal value includes the assumption of about $7.5 million of working capital, Calgary-based Twin Butte said in a statement late on Monday.

Waseca, which explores and develops heavy oil resources in the Lloydminster area in central Alberta and Saskatchewan, is 81.1 percent owned by Sprott Resource.

RBC Capital Markets advised Waseca while Peters & Co Ltd advised Twin Butte.

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