Business
Greenfire Resources Announces Appointment of Interim Chairman and Adoption of Shareholder Rights Plan in Response to Waterous Energy Fund's Agreement to Acquire Greenfire Shares
Calgary, Alberta--(Newsfile Corp. - September 19, 2024) - Greenfire Resources Ltd. (NYSE: GFR) (T...
About this update from Greenfire Resources Ltd.
[{"type":"text","content":"Greenfire Resources Announces Appointment of Interim Chairman and Adoption of Shareholder Rights Plan in Response to Waterous Energy Fund's Agreement to Acquire Greenfire SharesCalgary, Alberta--(Newsfile Corp. - September 19, 2024) - Greenfire Resources Ltd. (NYSE: GFR) (TSX: GFR) (\"Greenfire\" or the \"Company\"), a Calgary-based energy company focused on the production and development of thermal energy resources from the Athabasca region of Alberta, Canada acknowledges the announcement on September 16, 2024 by Waterous Energy Fund Management Corp. (\"WEF Manager\") in its capacity as manager of certain limited partnerships (collectively, \"WEF\"), that it has entered into agreements with certain Greenfire shareholders (the \"Selling Shareholders\") to acquire 43.3% of the issued and outstanding common shares (the \"Common Shares\") of the Company (the \"Proposed Acquisition\"). The Selling Shareholders include, among others, Allard Services Limited, a corporation controlled by Julian McIntyre, a director of Greenfire, and Annapurna Limited, a corporation controlled by Venkat Siva, a director of Greenfire. As referenced in the announcement by WEF, the Proposed Acquisition is intended to be an exempt take-over bid pursuant to the private agreement exemption (the \"Exemption\") as set out in section 4.2 of National Instrument 62-104 - Takeover Bids and Issuer Bids (\"NI 62-104\"). The Board of Directors of Greenfire (the \"Board\") is currently reviewing the details of the Proposed Acquisition and exercising its fiduciary duties to evaluate the Company's options, with support from its financial and legal advisors.Greenfire's Ongoing Evaluation of Strategic AlternativesGiven these developments, Greenfire believes it is important for shareholders to be made aware that the Board confidentially engaged TD Securities in July 2024 to assist the Company with evaluating its strategic alternatives, given the Company's discounted valuation relative to pure play oil sands peers. Shortly after engaging TD Securities, Greenfire determined that it was in the Company's best interest to update its reserve report to reflect its current development plans which include utilizing the latest SAGD technologies, including its successful extended reach refill wells, inflow control devices, etc., and to also capture a number of economic brownfield grow...