Daylight Energy Trust says it will pay $100 million in stock for Tempest Energy Corp. in
Daylight Energy Trust says it will pay $100 million in stock for Tempest Energy Corp. in a deal approved by the board of directors of both companies.
Calgary-based Tempest also said Monday it will then sell some of Tempest's assets in Alberta's Red Earth area for $46 million - to Midnight Oil Exploration - and boost its monthly distributions to unitholders.
The acquisition from Tempest includes $14 million of undeveloped land and current production of 2,300 barrels of oil equivalent per day.
Under the terms of an agreement with Tempest's board, one Daylight trust unit will be issued for every 2.35 Class A shares of Tempest. Shareholders of Tempest will also receive shares in a new junior exploration company to be formed from certain assets contributed by Daylight and Tempest.
In the second deal, Midnight Oil will acquire about 600 barrels of oil equivalent per day of current production, as well as undeveloped exploratory land in the Red Earth area currently owned by Tempest.
Completion of the various transactions is subject to approvals by regulators and shareholders. Meetings and votes are to be held by the end of November.
On the Toronto stock market early Monday, Daylight Energy units were down 20 cents at $12, Tempest Energy rose 62 cents to $4.94 and Midnight Oil Exploration was down 11 cents at $4.15.
