Business
Saturn Oil & Gas Inc. Announces Closing of the Acquisition of Ridgeback Resources Inc.
Calgary, Alberta--(Newsfile Corp. - February 28, 2023) - Saturn Oil & Gas Inc. (TSXV: SOIL) (...
About this update from Saturn Oil & Gas Inc.
[{"type":"text","content":"Saturn Oil & Gas Inc. Announces Closing of the Acquisition of Ridgeback Resources Inc.Calgary, Alberta--(Newsfile Corp. - February 28, 2023) - Saturn Oil & Gas Inc. (TSXV: SOIL) (FSE: SMKA) (OTCQX: OILSF) (\"Saturn\" or the \"Company\") is pleased to announce that further to its press releases of January 20, 2023, it has successfully completed the previously announced acquisition of Ridgeback Resources Inc. (the \"Ridgeback Acquisition\"), a privately held oil and gas producer focused on light oil production in Saskatchewan and Alberta, for a transaction value of approximately $516 million1.The Ridgeback Acquisition adds: approximately 17,000 boe/d of additional oil and natural gas production (approximately 140% increase); andtarget run rate production of over 30,000 boe/d (82% crude oil and NGL's). \"With the closing of the Ridgeback Acquisition, Saturn has diversified its light oil focused production base with a deep and sustainable portfolio of development opportunities,\" said John Jeffrey, CEO of Saturn. \"We now have a total inventory of over 940 (gross) booked drilling locations to sustain Saturn's production for over a decade.\"Consideration for the Ridgeback Acquisition was comprised of $475 million in cash, and the issuance of 19,406,167 common shares in the capital of the Company (\"Common Shares\")1. The cash portion of the purchase price was funded through the net proceeds of Saturn's previously announced $125 million bought deal equity financing (the \"Financing\"), and proceeds from an amended and restated credit agreement with the Company's existing lender which increased the Company's borrowing capacity and provided additional proceeds of $375 million. The Financing was completed by way of a prospectus supplement to the Company's base shelf prospectus and was ‎underwritten by Echelon Capital Markets, as sole bookrunner and co-lead, Canaccord Genuity Corp., as co-lead, and ‎with syndicate underwriters including Eight Capital, Beacon Securities Limited and Paradigm Capital Inc. The Company ‎received strategic lead orders from GMT Capital Corp., Libra Advisors, LLC and other institutional investors, and will seek to appoint up to two new members to the Board of Directors to expand its technical ‎and operational expertise.‎In accordance with their terms, each subscription recei...