Business
Compton Petroleum Corporation to Make Offer to Acquire Stylus Energy Inc.
Compton Petroleum Corporation to Make Offer to Acquire Stylus Energy Inc..
About this update from Cullinan Metals Corp
[{"type":"text","content":"\n\n\n\nCALGARY, June 25 /CNW/ - Compton Petroleum Corporation ("Compton") and\nStylus Energy Inc. ("Stylus") are pleased to jointly announce that they have\nentered into an agreement whereby Compton will offer to acquire, by way of a\ntake-over bid, all of the issued and outstanding common shares of Stylus on a\nfully diluted basis (the "Offer") for cash consideration of $2.70 per common\nshare of Stylus. The total value of the Offer is approximately $91 million,\nincluding the assumption of approximately $12 million of net debt (before\noption proceeds and transaction costs). The Offer represents a 20% premium to\nthe most recent closing price of the common shares of Stylus.\n\n\n"I am pleased to be able to announce the proposed acquisition of Stylus,"\nsaid Ernie Sapieha, President & C.E.O. of Compton. "This transaction fits with\nour strategy of continued growth in our core areas and our focus on natural\ngas resource plays. The acquisition of Stylus creates significant operational\nsynergies at Vulcan, Alberta and adds an attractive portfolio of additional\ndrilling prospects which will enhance our ability to execute our business\nplan."\n\n\nPaul Evans, President & C.E.O. of Stylus, added, "This transaction\nrepresents excellent value for Stylus shareholders. Compton, with its large\nland holdings and operational expertise, is the logical company for us to\ntransact with."\n\n\nCompton will acquire an attractive suite of natural gas focused\nproperties in Compton's existing core areas. The majority of the properties\nare operated and are characterized by high working interests, low operating\ncosts and high field netbacks.\n\n\nTransaction highlights:\n- reserve acquisition metrics (based on Compton's internal estimates of\n reserves effective June 1, 2007 and net of undeveloped land and\n seismic value) of $24.49/boe on proved reserves of 2,677 mboe and\n $16.24/boe on proved plus probable reserves of 4,038 mboe;\n- production acquisition metric (net of undeveloped land value) of\n $40,279/boe/d based on Stylus' production of approximately\n 2,000 boe/d;\n- Stylus' has 131,706 net acres of undeveloped land with an ascribed\n value of $10.6 million;\n- Additionally, Stylus has a proprietary interest in 4,852 kilometers\n of 2D and 962 sq. kilometers of new...