IPC will acquire the Canadian asset base of BlackPearl to combine with IPC’s existing Canadian and international assets. These assets include Onion Lake (Saskatchewan, Canada), Suffield Area and the Blackrod SAGD Project (Alberta, Canada), Bertram Field (Malaysia) and the Paris Basin and Aquitaine Basin (France).
Mike Nicholson, Chief Executive Officer of IPC comments: “With the completion of this transformational acquisition, IPC will more than double its total 2P reserves, with an increased oil weighting up from 42% to 74%. Total 2P reserves and contingent resources of IPC increase close to six times. IPC’s 2P reserves life is increased by seven years and daily average net production is expected to increase by more than 50% in the years ahead compared to IPC today. We also welcome the addition of a high calibre team of BlackPearl management and operational professionals with a long track record of value creation, to complement the existing IPC team.”
John Festival, Chief Executive Officer of BlackPearl comments: “This transaction will be very beneficial to the BlackPearl shareholders, who will gain an immediate material increase in value from the offered premium as well as exposure to the free cash flow of IPC’s diversified asset base while retaining the upside exposure to BlackPearl’s quality resource base. The combined company will have the financial strength to potentially accelerate development of BlackPearl’s exciting growth projects. I am very pleased to be joining the Board of Directors of IPC and look forward to adding strategic input to IPC going forward.”
Lukas H. Lundin, Chairman of IPC comments: “I am very excited about the future of IPC as the leading oil and gas growth company in the Lundin Group. IPC’s strategy is to maximise the value of the current asset base and, at the same time, seek to use its financial strength to acquire strategic oil and gas assets. This is exactly the right time in the resource cycle to be pursuing this strategy. The acquisition by IPC of BlackPearl takes the resource base above 1 billion bbls and is another big step in delivering that strategy. The Lundin family is fully committed to remain as a major shareholder of IPC into the future.”
Read the article online at: https://www.oilfieldtechnology.com/special-reports/10102018/international-petroleum-corp-to-acquire-blackpearl-resources-inc/