IPC Acquires Light Oil Producing Assets in Southern Alberta
A recent declaration from International Petroleum Corp. (IPC) states that it had become a part of an agreement to acquire Granite Oil Corp. for total debt and equity consideration of around $59 million. Further, the Acquisition consists of high netback, light oil-producing assets in the Milk River zone of Alberta, based southwest of IPC’s current operations in the Suffield area, in the north of the US border.
Practically all the current infrastructure and production will be 100 percent operated and owned by IPC, after the completion of the acquisition. Further, the acquisition will supplement IPC’s present operations in southeast Alberta. The assets will be controlled by IPC’s current operational groups at present working with the assets with the help of the Canadian management team.
This acquisition lines up with IPC’s strategy to target production assets, which are of low risk with further advancement potential. Besides, IPC hopes to offer additional data at its Capital Markets Day on February 11, 2020, concerning the assets and IPC’s strategies to maximize production and follow further development actions.
CEO of IPC Mike Nicholson commented,
We are very excited to announce our third acquisition of high quality operated assets in less than three years since IPC was created. The acquisition of Granite provides access to a new resource play fairway that adds additional reserves, resources, and production of long life, high margin light oil with significant growth potential. We believe that we can more than double current production levels within the next three years, more than fully funding this growth with the cash flows generated from these assets.
This acquisition had been collectively granted by the IPC Board of Directors. The Board of Directors of Granite has likewise collectively endorsed the arrangement. The Granite investors’ vote for the arrangement at the meeting of Granite investors will be held in the beginning of March 2020.