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Significant Developments in Canadian Energy – For the Month of December 2016

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Conventional

  • December 15, 2016 – Athabasca Oil Corporation entered into agreements with Statoil ASA and its wholly owned subsidiary Statoil Canada Ltd. to acquire their Canadian thermal oil assets for consideration of $435 million cash, 100 million common shares and contingent value payments triggered at oil prices above US$65 per bbl WTI.
  • December 14, 2016 – Toro Oil & Gas Ltd. entered into a definitive agreement with Steelhead Petroleum Ltd., pursuant to which Steelhead will acquire all of the outstanding common shares and common share purchase warrants of Toro Oil & Gas Ltd. for approximately $44.1 million in cash.
  • December 12, 2016 – Delphi Energy Corp. announced that it closed its strategic agreement with its existing working interest industry partner to accelerate the development of Delphi’s liquids-rich Deep Basin natural gas play at Bigstone in northwest Alberta. Delphi Energy Corp. received approximately $31.3 million in cash for the partner’s equalization of certain working interests and the partner also paid $10.9 million to Delphi for the partner’s carried obligation of the joint drilling program.
  •  December 9, 2016 – The Court of Queen’s Bench of Alberta granted an approval and vesting order for the previously announced purchase and sale of substantially all of the assets and business of Lightstream Resources Ltd. by Ridgeback Resources Inc. for the full amount of the claims outstanding in respect of the company’s 9.875% second lien secured notes due 2019 and debt in priority to the secured notes.
  • December 9, 2016 – ARC Resources Ltd. closed the previously-announced sale of its Saskatchewan assets and operations to Spartan Energy Corp. for total cash consideration of $700 million, subject to customary post-closing adjustments. The effective date of the transaction is October 1, 2016.
  • December 8, 2016 – Spartan Energy Corp. closed its previously announced bought deal public offering, including the exercise in full of the over-allotment option, for aggregate gross proceeds of approximately $287.6 million. Prior to the completion of the prospectus offering, Spartan closed a non-brokered private placement offering for aggregate gross proceeds of $255 million. The aggregate gross proceeds from the prospectus offering and the private placement are approximately $542.6 million.
  • December 6, 2016 – Marquee Energy Ltd. announced the completion of the previously announced acquisition of Marquee Energy Ltd. by Alberta Oilsands Inc. by way of a plan of arrangement and the subsequent completion of the short-form vertical amalgamation to form the “new” Marquee Energy Ltd.
  • December 6, 2016 – Pine Cliff Energy Ltd. closed its previously announced disposition of non-core oil assets for $31.4 million, prior to any closing adjustments, consisting of $26.6 million in cash and $4.8 million in TSX-listed common shares of the purchaser. The disposed assets include approximately 500 boe per day of production weighted 94% to oil located in the Viking area of central Alberta.
  • December 5, 2016 – TransGlobe Energy Corporation entered into a definitive agreement to acquire Cardium light oil and Mannville liquid-rich gas assets in the Harmattan area of west-central Alberta for total consideration of $80 million.
  • December 5, 2016 – Bellatrix Exploration Ltd. entered into an agreement with a TSX-listed issuer to sell certain non-core assets in the Harmattan area of Alberta for $80 million, subject to customary closing adjustments. The transaction is expected to close prior to December 31, 2016, with an effective date of December 1, 2016. The $80 million purchase price will be payable $65 million in cash and $15 million in a vendor take back loan bearing interest at 10% per annum and secured by a first lien charge against the assets being sold.
  • December 2, 2016 – PrairieSky Royalty Ltd. completed four separate acquisition transactions for aggregate consideration of $117.3 million, representing approximately 460 boe per day of royalty production and over 100,000 acres of mineral title and royalty lands.
  • December 2, 2016 – BlackPearl Resources Inc. completed the sale of a gross overriding royalty interest on its Onion Lake property for $55 million. Under the terms of the agreement BlackPearl sold an approximate 1.75% royalty on production from substantially all of its Onion Lake lands.

Unconventional

  • December 15, 2016 – PrairieSky Royalty Ltd. entered into a definitive agreement with Pengrowth Energy Corporation to acquire a 4% gross overriding royalty on current and future phases of its Lindbergh SAGD thermal oil project, as well as seismic over certain lands in British Columbia and Alberta, for total cash consideration of $250 million.

Midstream

  • December 21, 2016 – Alberta Investment Management Corporation on behalf of certain of its clients, agreed to acquire an ownership stake in Howard Energy Partners from EnLink Midstream Partners, LP. The investment, representing an ownership stake of approximately 28% of Howard Energy Partners, makes the Alberta Investment Management Corporation the second largest unitholder in the company. The transaction is expected to close during the first quarter of 2017, subject to customary closing conditions.
  • December 20, 2016 – Tidewater Midstream and Infrastructure Ltd. acquired from a vendor the remaining approximate 37% working interest in the Brazeau River Complex gas plant and the remaining approximate 60% working interest in 105 kilometres of gas gathering pipelines directly connected to the BRC in addition to the remaining working interests for 100% ownership in the previously announced three proven natural gas storage reservoirs that are also directly connected to the BRC for a purchase price of $30 million in cash.
  • December 16, 2016 – Spectra Energy Corp. announced that during a special stockholder meeting, Spectra Energy stockholders voted to approve the previously announced combination of Spectra Energy with Enbridge Inc. in a stock-for-stock merger transaction. Enbridge shareholders also approved the required resolutions in connection with the merger transaction between Enbridge and Spectra at its special meeting of shareholders.
  • December 2, 2016 – Enbridge Inc. together with Enbridge Income Fund Holdings Inc. announced that it closed the previously announced sale of its South Prairie Region assets to Tundra Energy Marketing Limited for $1.075 billion in cash.