International Petroleum Corporation (IPC) has announced its plans to acquire Canada-based oil and gas company Cor4 Oil for a total consideration of about $62m.
IPC to acquire Cor4’s assets in southern Alberta. (Credit: Lundin Group of Companies)
Through its local subsidiary IPC Canada, the company has signed an agreement with Cor4.
Under the terms of the agreement, IPC Canada will purchase all the issued and outstanding common shares of Cor4, along with options and warrants convertible into Cor4 shares.
IPC said that around 98% of Cor4 shareholders have signed support agreements to tender their shares.
The acquisition is expected to be completed by the end of Q1 2023, subject to regulatory approvals.
IPC chief executive officer Mike Nicholson said: “We are very pleased to announce today the complementary acquisition of almost 16MMboe of 2P reserves adjacent to our Suffield property in Alberta, Canada, through the proposed acquisition of Cor4, a private company.
“The producing assets to be acquired are complementary not only to our Suffield assets but in addition, to a recent land acquisition that IPC concluded in the fourth quarter of 2022.
“Following these acquisitions, we now have over 25 drilling inventory locations on the Ellerslie play fairway that extends from the west of our Suffield asset, to our new land acquisition and into the Cor4 property.”
The acquisition will add oil and gas assets with a total proved plus probable (2P) reserves of 15.9 million barrels of oil equivalent (MMboe) as of December last year.
The assets are estimated to produce around 4,000 barrels of oil equivalent per day this year, along with several drilling locations close to IPC’s currently operating areas in southern Alberta.
IPC intends to drill a total of six wells on the new play this year.
In December last year, IPC’s subsidiaries IPC Malaysia and IPC SEA Holding signed a letter of agreement with Petronas to extend the Block PM 307 Production Sharing Contract (PM 307 PSC).