Kelt enters into an agreement to acquire strategic assets and announces $101 million equity financing

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[{"type":"text","content":"\n\n\nCALGARY, Nov. 6, 2013 /CNW/ - (\"KEL\" - TSX) - Kelt Exploration Ltd. (\"Kelt\" or the \"Company\") has entered into an\n agreement with a Canadian oil and gas company to acquire certain crude\n oil and natural gas assets located at Pouce Coupe/Spirit River, in\n close proximity to the Company's core producing areas at Grande Cache\n and Karr in west central Alberta. The acquisition has an effective date\n of October 1, 2013 and is subject to standard industry closing\n conditions. Closing is expected to occur on or around December 20,\n 2013.\n\n\nThe consideration to be paid by Kelt is $192.0 million, before closing\n adjustments, and will be financed by existing cash on hand and proceeds\n from an equity financing (described in more detail below). The Company\n has received a commitment letter from its bank, National Bank of\n Canada, whereby Kelt's available bank credit line will be increased to\n $100.0 million, upon satisfactory closing of the Pouce Coupe/Spirit\n River asset acquisition.\n\n\nKey Attributes of Assets to be Acquired\n\n\n■ Current net production is estimated to be approximately 4,800 BOE per\n day - 40% oil and 60% gas (approximately 8% of current production is\n subject to rights of first refusal).\n\n\n■ At current index pricing for crude oil of WTI US$95.00 per barrel and\n for natural gas at AECO $3.25 per GJ, operating netbacks are\n approximately $23.00 per BOE, providing approximately $40.0 million of\n annual operating income at current production levels.\n\n\n■ Petroleum and natural gas reserves to be acquired have been evaluated\n internally by Kelt effective October 1, 2013:\n\n\n\n\n\n \n\n\n \n\n\n \n\n\n→ Proved developed producing reserves were 10.1 million BOE, with no\n associated future development costs;\n\n\n \n\n\n \n\n\n \n\n\n→ Total proved reserves were 13.8 million BOE, with $49.2 million in\n associated future development capital;\n\n\n \n\n\n \n\n\n \n\n\n→ Total proved plus probable reserves were 23.0 million BOE, with $134.9\n million in associated future development capital.\n\n\n\n\n\n■ Long-life reserves with a proved plus probable reserve life index of\n 13.1 years based on current production.\n\n\n■ Major infrastructure component with interests in major oil and gas\n ...

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