Business
Bear Ridge to acquire Veteran Resources Inc.
Bear Ridge to acquire Veteran Resources Inc..
About this update from Valdor Technology International Inc
[{"type":"text","content":"\n\n\n\n\nCALGARY, Nov. 4 /CNW/ - Bear Ridge Resources Ltd. (\"Bear Ridge\") and\nVeteran Resources Inc. (\"Veteran\") are pleased to jointly announce that the\ntwo companies have entered into an arrangement agreement, whereby Bear Ridge\nwill acquire all of the issued and outstanding shares of Veteran pursuant to a\nPlan of Arrangement (the \"Arrangement\") to be submitted to the Veteran\nshareholders for approval in mid January 2006.\nShareholders of Veteran will receive, in the aggregate, a maximum of\n$34,651,059 in cash and a maximum of 17,022,333 Bear Ridge shares, being the\nequivalent of $0.48 in cash and 0.2358 of a Bear Ridge share for each Veteran\nshare. Pursuant to the Arrangement, Veteran shareholders will be entitled to\nelect to receive in exchange for their Veteran shares, subject to pro-\nrationing in the event that the aggregate elected amounts exceed the maximum\namounts of cash and Bear Ridge shares set out above: (i) 0.3369 Bear Ridge\nshare for each Veteran share, (ii) $1.60 cash for each Veteran share, or\n(iii) a combination of cash and Bear Ridge shares, all as more specifically\nset forth in the Arrangement and to be further described in an information\ncircular to be mailed to Veteran shareholders. Based on the 10-day weighted\naverage trading price for Bear Ridge of $4.59 and for Veteran of $1.38, the\naggregate consideration under the offer represents a premium of 13.2% to the\n10-day weighted average trading price for Veteran shareholders.\n\nTransaction Highlights:\n\n- Concentrated asset base materially increases Bear Ridge's position in\n the Peace River Arch (the \"PRA\") and Northeast British Columbia\n (\"NEBC\"). Veteran's focused positions at Earring in the PRA and\n Gunnell in NEBC are an excellent fit with Bear Ridge's existing\n properties and exploration activity in these regions. Bear Ridge's\n technical team has a very successful track record in the multi-zone\n PRA region and considerable expertise in horizontal carbonate gas\n projects analogous to Gunnell.\n\n- Veteran's current production is 2,050 boe per day:\n - 80% of current production focused in the PRA and NEBC\n - 80% weighted to natural gas\n - 60% operated production\n - High current operating netbacks of approximately $48.00 per boe\n\n- Veteran brings strong drillbit growth potential:\n - Solid inventory of over 70 expl...