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Advantage Energy (OTCPK:AAVVF) said Monday it agreed to acquire synergistic Charlie Lake and Montney assets from an unnamed private seller for C$450M in cash.
Advantage (OTCPK:AAVVF) said it expects the deal will add 14.1K boe/day of production, with complementary infrastructure of 60M cf/day of gas handling capacity and 22.5K bbl/day of liquids handling capacity.
The deal will be funded through a bought deal offering consisting of $65M of subscription receipts and $125M of extendible convertible unsecured subordinated debentures, and draws on an upsized $650M credit facility.
“The acquisition capitalizes on a rare opportunity to consolidate a high-quality, liquids-weighted asset that is contiguous with our existing core areas and complementary to our dominant infrastructure platform,” the company said, adding that the assets include more than 10 years of top-tier Charlie Lake oil inventory that compares favorably with its existing Wembley oil assets.