Canada’s CNRL to acquire gas-weighted Storm Resources
Canadian Natural Resources Limited (CNRL), a major oil sands producer in Alberta, said November 10 it had agreed to acquire all the shares of gas-weighted Storm Resources for a cash consideration of C$6.28/share, or about C$766mn (US$618mn).
CNRL will also take on Storm’s existing debt and working capital deficit, estimated at about C$186mn. The agreement includes a non-completion fee of C$43.5mn, payable if Storm accepts a superior proposal or if CNRL amends the agreed proposal.
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Storm produces about 136mn ft3/day of natural gas and 5,600 barrels/day of natural gas liquids, primarily from the liquids-rich Montney fairway in northeastern British Columbia.
“This acquisition provides existing production and infrastructure that complements our current assets in the area,” CNRL president Tim McKay said. “These operating areas provide opportunity for synergies within our current diversified portfolio.”
CNRL will fund the acquisition from existing debt instruments. It is expected to close in December 2021, subject to normal closing conditions.