IPC (International Petroleum Corporation), a company listed on the TSX and Nasdaq Stockholm, announced its intention to acquire Cor4 Oil Corp. in Canada for an amount of approximately US$62 million (C$84 million).
Proven and probable reserves
The acquisition includes proved plus probable (2P) reserves totaling 15.9 million barrels of oil equivalent as of December 31, 2022. The assets to be acquired include an expected net production of 4,000 barrels of oil equivalent per day by 2023 and an inventory of drilling sites near IPC’s current operating area in southern Alberta.
General Manager’s comment
Mike Nicholson, IPC’s Chief Executive Officer, said, “We are very pleased to announce today the complementary acquisition of nearly 16 million boe of 2P reserves adjacent to our Suffield property in Alberta, Canada, through the proposed acquisition of Cor4, a private company. The producing assets to be acquired are complementary not only to our Suffield assets, but also to a recent land acquisition that IPC completed in the fourth quarter of 2022. As a result of these acquisitions, we now have more than 25 drilling inventory locations on the Ellerslie Zone fairway that extends from the west of our Suffield asset, to our new land acquisition and into the Cor4 property. IPC plans to drill a total of six wells on this exciting new play in 2023.”
Agreement between IPC Canada and Cor4
IPC Canada Ltd (IPC Canada) and Cor4 have entered into an agreement whereby IPC Canada has agreed to make an offer to Cor4 shareholders to purchase all of the issued and outstanding common shares of Cor4, together with options and warrants convertible into common shares of Cor4. This is based on an asset consideration of USD 62 million (CAD 84 million). Shareholders representing approximately 98% of Cor4’s fully diluted ordinary shares have entered into support agreements, agreeing to sell their shares to the Offer.
Regulatory approvals required
The acquisition remains subject to regulatory approvals and is expected to close by the end of the first quarter of 2023. Details of the acquisition will be provided at the CPI presentation on Tuesday, February 7, 2023.
