Terra Energy To Acquire Square Creek Gas Field And Other Assets Of Fortress Energy - Deal Analysis from GlobalData

Terra Energy To Acquire Square Creek Gas Field And Other Assets Of Fortress Energy - Deal Analysis from GlobalData

Summary

Terra Energy Corp, (Terra) entered into a purchase agreement to acquire 100% interest of the Square Creek gas field and all the oil and gas properties of Fortress Energy, Inc. (Fortress) for a purchase consideration of CAD 34.6 million ($33.5 million), of which CAD 25.6 million ($24.78 million) will be paid in cash and the remaining CAD 9 million ($8.71 million) through the issue of 5 million common shares at a price of CAD 1.80 per share ($1.74 per share). The acquisition increases Terra's total current production to around 8,000 boe/d.

The transaction implies deal multiples of $23,103.45 per boe of daily production, $7.79 per boe of proved reserves and $4.79 per boe of 2P reserves.

Scope

• Rationale behind Terra Energy acquiring assets from Fortress Energy
• Strategic Benefits for the companies involved
• Geography covered -Canada

Reasons to buy

• Develop a sound undestanding of the major M&A's, Partnerships, And Joint Ventures taking place in North American Oil & Gas industry
• Identify the most lucrative segments to leverage on the growth oppurtunities available in the Canadian oil & gas market
• Get a detailed analysis of a deal to enable you to take better decisions