Oct 14 - Crude oil and natural gas company Novus Energy Inc (NVS.V) on Wednesday agreed to buy Ammonite Energy Ltd (AMO.V) in a stock deal valued at about C$21.7 million ($21.11 million) to boost its production base and enhance its presence in western Canada.
As per the deal, Ammonite shareholders will get 0.825 of Novus common share for each share they own.
Separately, the company said it signed two letters of intent to buy certain assets, located in Ammonite's core operational area, from a private company for C$3.8 million, but declined to name the seller.
Novus said the deals would add about 285 barrels of oil equivalent per day (boe/d) to its production base.
As part of the Ammonite deal and the asset purchases, the company would issue about 31.6 million shares, assume C$1.1 million of debt and pay C$3.8 million in cash, Novus said in a statement.
Novus said the deals would provide it with an entry into the Viking oil resource play at Kindersley in southwest Saskatchewan and the Bakken oil play at Rocanville in southeast Saskatchewan.
Shares of Novus were down 5 Canadian cents at 72 Canadian cents, while Ammonite shares were up 7 Canadian cents at 49 Canadian cents Wednesday on the Toronto Venture Exchange.
As per the deal, Ammonite shareholders will get 0.825 of Novus common share for each share they own.
Separately, the company said it signed two letters of intent to buy certain assets, located in Ammonite's core operational area, from a private company for C$3.8 million, but declined to name the seller.
Novus said the deals would add about 285 barrels of oil equivalent per day (boe/d) to its production base.
As part of the Ammonite deal and the asset purchases, the company would issue about 31.6 million shares, assume C$1.1 million of debt and pay C$3.8 million in cash, Novus said in a statement.
Novus said the deals would provide it with an entry into the Viking oil resource play at Kindersley in southwest Saskatchewan and the Bakken oil play at Rocanville in southeast Saskatchewan.
Shares of Novus were down 5 Canadian cents at 72 Canadian cents, while Ammonite shares were up 7 Canadian cents at 49 Canadian cents Wednesday on the Toronto Venture Exchange.
