March 23 - NAL Oil and Gas Trust agreed to buy Alberta Clipper Energy Inc in an all-stock deal valued at C$37 million, excluding debt, to beef up production at its Sylvan Lake and west central Alberta sites.
NAL said it will issue about 5.7 million trust units at a price of C$6.45 each as part of the deal.
Based on an exchange offer of 0.079 of NAL shares for each Alberta Clipper share, the offer represents a price of 51 Canadian cents per share -- reflecting a discount of 6 percent to Alberta Clipper's closing price on Friday.
Including the assumption of Alberta Clipper's debt, the deal is valued at $115 million.
NAL also said its partner, Manufacturers Life Insurance Co, would buy a 50 percent working interest in all of Alberta Clipper's assets.
Manufacturers Life Insurance will pay about C$57.5 million in cash, which was adjusted to about C$52.5 million to reflect NAL's disproportionate interest in Alberta Clipper's tax pools.
NAL said all of the proceeds received from Manufacturers Life Insurance will be used to pay down the debt it assumed.
The oil and gas explorer said the deal, which is expected to close around June 1, is accretive to production, reserves and net asset value on a per unit basis in 2009 and 2010.
NAL raised its 2009 average daily production forecast to 22,700 barrels of oil equivalent per day (boe/d) to 23,700 boe/d, an increase of 700 boe/d.
Shares of NAL were trading up 1 percent at C$6.63, while those of Alberta Clipper were down 9 percent at 49 Canadian cents Monday morning on the Toronto Stock Exchange.
NAL said it will issue about 5.7 million trust units at a price of C$6.45 each as part of the deal.
Based on an exchange offer of 0.079 of NAL shares for each Alberta Clipper share, the offer represents a price of 51 Canadian cents per share -- reflecting a discount of 6 percent to Alberta Clipper's closing price on Friday.
Including the assumption of Alberta Clipper's debt, the deal is valued at $115 million.
NAL also said its partner, Manufacturers Life Insurance Co, would buy a 50 percent working interest in all of Alberta Clipper's assets.
Manufacturers Life Insurance will pay about C$57.5 million in cash, which was adjusted to about C$52.5 million to reflect NAL's disproportionate interest in Alberta Clipper's tax pools.
NAL said all of the proceeds received from Manufacturers Life Insurance will be used to pay down the debt it assumed.
The oil and gas explorer said the deal, which is expected to close around June 1, is accretive to production, reserves and net asset value on a per unit basis in 2009 and 2010.
NAL raised its 2009 average daily production forecast to 22,700 barrels of oil equivalent per day (boe/d) to 23,700 boe/d, an increase of 700 boe/d.
Shares of NAL were trading up 1 percent at C$6.63, while those of Alberta Clipper were down 9 percent at 49 Canadian cents Monday morning on the Toronto Stock Exchange.
