Painted Pony acquires UGR Blair Creek

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Painted Pony Petroleum Ltd. announced yesterday that it will be acquiring UGR Blair Creek Ltd., a subsidiary of Unconventional Resources Canada, in a stock deal worth roughly $276 million.

The deal will involve $229 million dollars in Painted Pony shares, while the company will also take on UGR’s $47 million in debt.

UGR operates high working interest Montney assets with established production, infrastructure and land holdings jointly with and adjacent to Painted Pony’s assets in northeast British Columbia.

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Painted Pony also announced that it is seeking nearly $101 million in equity financing both to pay down bank debts, and to spend on drilling.

The acquisition means that the Calgary-based company will increase its acreage in the Montney region by 52 percent. According to a release from the company, the acquisition increases Painted Pony’s forecast 2017 average daily production by 12% to approximately 290 million cubic feet per day. UGR’s assets will add 155 million cubic feet/day in gas processing capacity, of which 105 million cubic feet/day is currently unutilized by UGR, along with 106 million cubic feet/day in capacity on Enbridge’s pipeline system in the area.

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