Key Developments: Petrobank Energy and Resources Ltd (PBG.TO)
0.49CAD
19 Jun 2013
$-0.01 (-2.00%)
$0.50
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$0.48
215,171
217,921
$14.86
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Latest Key Developments (Source: Significant Developments)
Petrobank Energy and Resources Ltd And PetroBakken Complete Reorganization-Canada Stockwatch
Canada Stockwatch reported that Petrobank Energy and Resources Ltd and PetroBakken Energy Ltd.'s previously proposed reorganization, which will result in Petrobank shareholders effectively receiving Petrobank's shareholdings in PetroBakken while maintaining their interest in the remaining Petrobank assets, was completed on December 31, 2012. The reorganization resulted in a newly incorporated company (New Petrobank) acquiring all of the assets and liabilities of Petrobank, other than its PetroBakken common shares. Through the reorganization, each share of Petrobank outstanding on the effective date was effectively exchanged for 1.1051 shares of PetroBakken and one share of New Petrobank, which will own and operate Petrobank's existing heavy oil business, and its THAI and related technologies, and will have no debt and over $100-million of cash and marketable securities (pro forma the receipt of PetroBakken's December dividend in mid-January). The ex distribution date for the entitlement to receive the PetroBakken shares pursuant to the reorganization will be January 2, 2013. Accordingly, any trades in New Petrobank shares made on or after January 2, 2013, will not include the right to receive the PetroBakken shares to be distributed pursuant to the reorganization. The New Petrobank shares will trade under Petrobank's existing share symbol, PBG, and PetroBakken will continue to trade under its existing share symbol, PBN. Full Article
Petrobank Energy and Resources Ltd Signs Agreement With PetroBakken To Complete Corporate Reorganization-MarketLine
MarketLine reported that Petrobank Energy and Resources Ltd has entered into an agreement with PetroBakken Energy Ltd, its 57% owned subsidiary, to complete a corporate reorganization that will see Petrobank shareholders receive Petrobank's proportionate interest in its PetroBakken share holdings while maintaining their interest in the remaining Petrobank assets. Petrobank and PetroBakken have signed an arrangement agreement detailing the terms and conditions of the Reorganization. The Board of Directors of each Company have approved the Reorganization, which is anticipated to become effective on December 31, 2012. Pursuant to the Reorganization, a new Alberta corporation will be formed (New Petrobank) which will, through a series of transactions, directly or indirectly acquire all of Petrobank's assets and liabilities, including our heavy oil assets, the THAI and related patents and cash (anticipated to be over $100 million) (the Heavy Oil Business), but excluding our investment in PetroBakken (the PetroBakken Shares). Existing Petrobank shareholders will receive one share of New Petrobank for every share of Petrobank held on the Effective Date. Full Article
Petrobank Energy and Resources Ltd To Combine With Unit; To Separate Heavy Oil Business-Reuters
Reuters reported that Petrobank Energy and Resources Ltd will merge with its light-oil focused unit PetroBakken Energy Ltd and transfer its heavy oil business to a new entity to arrest a fall in its market valuation. Petrobank will form a new entity called New Petrobank, which will buy the heavy oil business of the company. Petrobank, which has a market value of CDN$1.18 billion, did not specify if the new company would be publicly listed. Petrobank shareholders will receive one share of the new company for each Petrobank share held. Petrobank will merge with PetroBakken, valued at C$2.52 billion, and the new entity will retain the unit's name. Full Article
Petrobank Energy and Resources Ltd Reaffirms FY 2012 Production Guidance-Conference Call
Petrobank Energy and Resources Ltd announced that it is achieving fiscal 2012 exit production rates of between 52,000 to 56,000 BOE per day. Full Article
Petrobank Energy and Resources Ltd. Issues FY 2012 Production Guidance
Petrobank Energy and Resources Ltd. announced that it expects fiscal 2012 exit production rates of between 52,000 boepd and 56,000 boepd. Full Article
Petrobank Energy and Resources Ltd Announces Closing Of May River Property Disposition And Cancellation Of Credit Facility-News Bites-Global Stocks
News Bites-Global Stocks reported that Petrobank Energy and Resources Ltd has closed the previously disclosed sale of our May River property to Grizzly Oil Sands Ulc. for cash proceeds of approximately $225 million after normal closing adjustments. After repayment of existing bank debt and expected transaction costs, Petrobank will have no debt, approximately $140 million of cash and a working capital deficit estimated at $10 million at February 28, 2012. Due to this high level of cash liquidity, it have elected to cancel $200 million syndicated credit facility immediately, which will result in further savings of approximately $1.5 million per year in stand-by fees on the unused facility. Petrobank continues to have flexibility with approximately $140 million of cash on hand and PetroBakken shares having a current value of over $1.8 billion, and, based on PetroBakken"s current dividend level, it will receive annual dividends of approximately $105 million (comprised of 50% cash plus 50% in additional PetroBakken shares based on the current participation in PetroBakken"s dividend reinvestment plan). Full Article
Petrobank Energy and Resources Ltd. Announces Closing Of May River Property Disposition And Cancellation Of Credit Facility
Petrobank Energy and Resources Ltd. announced that we have closed the previously disclosed sale of May River property to Grizzly Oil Sands Ulc. for cash proceeds of approximately $225 million after normal closing adjustments. After repayment of existing bank debt and expected transaction costs, Petrobank will have no debt, approximately $140 million of cash and a working capital deficit estimated at $10 million at February 28, 2012. Due to this high level of cash liquidity, the Company have elected to cancel $200 million syndicated credit facility immediately. Full Article
Petrobank Energy and Resources Ltd Announces Sale of May River Property-News Bites-Global Stocks
News Bites-Global Stocks reported that Petrobank Energy and Resources Ltd has entered into an agreement with Grizzly Oil Sands Ulc. to sell May River property, which includes the Conklin demonstration project, for gross cash proceeds of $225 million subject to normal closing adjustments. Proceeds from this transaction will initially be used to repay outstanding bank debt and will result in Petrobank having a positive cash and working capital balance. The transaction is subject to satisfaction of certain customary conditions, including receipt of required regulatory approvals, and is expected to close by the end of February 2012. As part of this sale, the May River regulatory application is expected to be withdrawn. Full Article
Petrobank Energy and Resources Ltd. Announces Sale of May River Property
Petrobank Energy and Resources Ltd. announced that the Company has entered into an agreement with Grizzly Oil Sands Ulc. to sell our May River property, which includes the Conklin demonstration project, for gross cash proceeds of $225 million subject to normal closing adjustments. Proceeds from this transaction will initially be used to repay outstanding bank debt and will result in Petrobank having a significant positive cash and working capital balance. TD Securities Inc. and UBS Securities Canada Inc. acted as financial advisors to Petrobank on this transaction. Full Article
Petrobank Energy and Resources Ltd. Announces Normal Course Issuer Bid
Petrobank Energy and Resources Ltd. announced that Board of Directors has approved a normal course issuer bid (NCIB). The Toronto Stock Exchange (TSX) has accepted the Company's notice to make the NCIB to purchase outstanding common shares on the open market, in accordance with the rules of the TSX. As approved by the TSX, Petrobank is authorized to purchase up to 7,273,401 common shares, representing approximately 10% of the public float of Petrobank shares as defined by the policies of the TSX, being 72,734,010 shares. As of today's date, there are 106,326,305 common shares outstanding. On any trading day, Petrobank may not purchase more than 132,632 common shares, representing 25% of the average daily trading volume on the TSX over the previous six calendar months. Petrobank is authorized to make purchases during the period from September 14, 2011 to September 13, 2012, or until such earlier time as the NCIB is completed or terminated at the option of Petrobank. Any common shares purchased by Petrobank under the NCIB will be purchased on the open market through the facilities of the TSX and other registered marketplaces, including ALPHA, OMEGA, PURE, Chi-X and Match Now, at the prevailing market price at the time of the transaction. All shares acquired under the NCIB will be cancelled. Full Article
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