Reuters: Regulatory News: UPDATE 1-Pinecrest to buy Spartan for about C$427 mln

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UPDATE 1-Pinecrest to buy Spartan for about C$427 mln Nov 21st 2012, 15:10 Wed Nov 21, 2012 10:10am EST Nov 21 (Reuters) - Canada's Pinecrest Energy Inc said it will buy Spartan Oil Corp for about C$427 million as it looks to bulk up its light oil assets. Pinecrest will offer 2.738 shares for each Spartan share, valuing Spartan's stock at C$5.12 each. Spartan shares had closed at C$5.12 on Tuesday on the Toronto Stock Exchange. Pinecrest shares were up 6 percent at C$2 on the Toronto Venture Exchange, while Spartan's shares touched a life-high of C$5.52 on Wednesday morning. The combined company, which will be managed by Pinecrest's existing executive team, will focus its capital expenditure on the cardium light oil resource play in the Pembina area of central Alberta and some areas of northern Alberta. Pinecrest, which has operations in Alberta and Saskatchewan, estimated the combined company's average pro forma 2013 production at between 9,200 and 9,600 barrels of oil equivalent/day. Spartan shareholders will own about 49 percent of the combined company, which could operate under a different name. Spartan is present in cardium light oil play in central Alberta and the Bakken light oil resource play in southeast Saskatchewan. The termination fee for the deal is set at C$12.5 million. Dundee Securities is the lead financial adviser to Pinecrest, while TD Securities is acting as financial adviser to Spartan. Link this Share this Digg this Email Reprints

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