More Montney Assets Hit Market In Wake Of Seven Generations’ CDN $1.9bn Deal

Two Canadian producers are seeking to capitalize on the enduring pulling power of the Montney play by putting assets up for sale, according to CanOils’ newest report focused on M&A activity in August.

RMP Energy Inc. (TSX:RMP) and Chinook Energy Inc. (TSX:CKE.TO) have healthy balance sheets and a good inventory of development assets. Both have extensive holdings in the Montney shale. They form the bedrock of the total 12,700 boe/d of publicly disclosed Canadian assets put up for sale in August 2016. The listings follow the recent Cdn$1.9 billion acquisition by Seven Generations Energy Ltd.’s (TSX:VII) of predominantly Montney assets from Paramount Resources Ltd (TSX:POU.TO), which showed Montney assets can still attract strong interest for high value deals.

RMP Energy Inc.

The largest Canadian asset listing in August involved RMP Energy initiating a strategic alternatives process, retaining Scotia Waterous and FirstEnergy Capital Corp. The majority of RMP’s production is derived from the Ante Creek and Waskahigan fields. RMP produces 8,425 boe/d (43% liquids) based on Q2 2016 production figures. The company owns 24.6 million boe of 1P reserves (36% liquids).

Active RMP Energy Inc. wells as of July 31, 2016

RMP.jpg

Source: CanOils Monthly M&A Review, August 2016

Chinook Energy Inc.

Chinook Energy Inc. has also initiated a strategic alternatives review and has retained Peters & Co. as its exclusive financial adviser. Chinook is predominantly Montney-focused with 2,890 boe/d of production during Q2 2016 and 12.9 million boe (16% liquids) of 1P reserves. Chinook said it is open to expanding its core operations via acquisitions or by establishing a new core of operations. They will also entertain a merger, sale or JV with a well-capitalized entity to help develop existing assets.

Also this month

Away from the Montney, August saw Virginia Hills Oil Corp. (TSX:VHO.V) initiate its own strategic review process, while Grant Thornton, in its role as receiver for RedWater Energy Corp., retained CB Securities to advise in the sale of a portion of RedWater’s assets.

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