CALGARY (CP) -- Aquest Energy Inc. shares jumped more than 33% Tuesday morning after the oil-and-gas firm announced it was being bought by privately held Anderson Energy Ltd. in an all-share deal.
Aquest shares [TSX:AEX] rose 56 cents to C$2.25 on the Toronto Stock Exchange, where the firm's stock market value was about C$52 million as of Monday.
Both companies' boards of directors have approved the deal, which will give shareholders C0.31 of a share in Anderson Energy for each share of Aquest, the companies said.
Under the agreement, Anderson common shares will also be listed on the Toronto Stock Exchange.
Anderson's current management previously sold Anderson Exploration Ltd. for C$4.6 billion US to Devon Energy Corp. in 2001. Aquest's chairman, Glenn Hockley, will join the Anderson board after the acquisition is completed.
The officers and directors of both firms have agreed to vote in favour of deal, which is subject to approval by both security holders and regulators.
Anderson Energy's portfolio of mainly natural gas assets include the Sylvan Lake, Greencourt and Peace River Arch areas in Alberta and northeastern British Columbia. It is conducting a 42-well drilling program at Sylvan Lake and a three-well program in the Peace River Arch.
The company also completed a C$24-million private placement financing last December to institutional and private investors and Anderson management, directors and employees at C$5.50 per common share.
''The acquisition of Aquest represents an exceptional opportunity for Anderson to expand its position in the Sylvan Lake area and use Anderson's expertise to develop Aquest's assets,'' Anderson CEO Brian Dau said in a release.
As of March 31, Anderson had 33.6 million shares outstanding, debt of C$400,000, tax pools of about C$95 million and 80,000 hectares of undeveloped land. Aquest had 30.9 million shares outstanding, net debt of about C$20.4 million, tax pools of about C$43 million and 23,200 net hectares of undeveloped land.
It is estimated that the combined company will have daily production of more than 3,600 barrels of oil equivalent, although Anderson expects the company will be able to increase production to an average of 6,000 to 6,400 boe/d for 2006 based on its current inventory and drilling program.
Security holders are expected to approve the deal in late August. It is also subject to various other approvals.
(c) The Canadian Press 2005
