IPC Announces Completion of Acquisition of Light Oil Assets in Southern Alberta
March 6, 2020
International Petroleum Corp. (“IPC”) (TSX, Nasdaq Stockholm: IPCO) is pleased to announce the closing of the previously announced acquisition of Granite Oil Corp. (“Granite”) (TSX:GXO; OTCQX:GXOCF) (the “Acquisition”). The Acquisition includes total proved plus probable (“2P”) reserves of 14.0 million barrels of oil equivalent (MMboe) and 6.2 MMboe of unrisked contingent resources (best estimate) as at December 31, 2019.
The Acquisition is comprised of high netback, light oil producing assets in southern Alberta (the “Assets”). The Assets include existing infrastructure to enable the current gas injection enhanced oil recovery (EOR) scheme, with capacity to allow for potential further field development opportunities. The Assets also include associated oil and gas processing and injection facilities located in proximity to key sales points.
Under the terms of the Acquisition, IPC acquired all of the issued and outstanding common shares of Granite (“Granite Shares”) for consideration of approximately USD 27 million (CAD 37.1 million) and IPC assumed Granite’s net debt of approximately USD 30 million (CAD 40 million). Each former Granite shareholder is entitled to receive CAD 0.95 for each Granite Share held prior to the Acquisition (the “Cash Consideration”).
The Granite Shares are expected to be delisted from the Toronto Stock Exchange and the OTCQX on or around March 10, 2020.
Pursuant to the letter of transmittal mailed to Granite shareholders in connection with the special meeting of Granite shareholders held on March 5, 2020, in order to receive the Cash Consideration, registered holders of Granite Shares are required to deposit a duly completed the letter of transmittal together with their share certificates, with Computershare Trust Company of Canada. Shareholders whose Granite Shares are registered in the name of a broker, dealer, bank, trust company or other nominee should contact their nominee with questions regarding receipt of the Cash Consideration.