Storm Resources is producing 136 million cubic feet per day of natural gas
Alberta-based oil and gas production company, Canadian Natural Resources Limited, has agreed to buy Storm Resources Ltd. for a total purchase price of $960 million.
Under the deal, Canadian Natural will acquire all the issued and outstanding common shares of Storm for a cash consideration of $6.28 per Storm Share. As part of the transaction, Canadian Natural will also assume Storm’s total debt, working capital deficit and other monetary obligations worth $186 million. Stikeman Elliott LLP is acting as legal counsel to Storm. Dentons Canada LLP is acting for Canadian Natural.
Storm is an oil and gas exploration and development company which was incorporated in 2010. Under the deal, Canadian Natural will own Storm’s current production of 136 million cubic feet per day of natural gas and 5,600 barrels per day of natural gas liquids. The assets to be acquired by Canadian Natural will include Storm’s properties in Montney, British Columbia. Canadian Natural said that Storm’s land and production are located within Canadian Natural’s core area, providing opportunity to leverage synergies.
“This acquisition provides existing production and infrastructure that complements our current assets in the area,” said Tim McKay, Canadian Natural’s president. “These operating areas provide opportunity for synergies within our current diversified portfolio. We look forward to working together with the staff currently employed by Storm.”
Canadian Natural is currently operating in Western Canada, the U.K sector of the North Sea and Offshore Africa. In June, Canadian Natural joined an alliance of companies operating approximately 90 per cent of Canada’s oil sands production. The alliance, Oil Sands Pathways to Net Zero initiative, works with the federal and Alberta governments to help Canada meet its climate goals.
The acquisition of Storm is expected to close in December and is subject to a non-completion fee of $43.5 million if the transaction is terminated in certain circumstances, including Storm’s acceptance of a superior proposal.
