Calgary-based and Oslo-listed Questerre Energy Corp. appears set to buy a junior oil company in Magnus Energy Inc., an outfit in possession of a 70-million-barrel, light, sweet oil “pool”.
The high-quality light oil earns over an above West Texas rates, and on government-owned land in Canada, a 2.5 percent royalty must be paid. The oil lies in an area called Antler in the southeast of Canada’s Saskatchewan province.
Questerre will buy the junior's shares, pay C$15 million in Magnus’s debt and issue some C$11 million in its own shares to the takeover target.
Magnus’s other value is 210 barrels of oil equivalent per day and C$8 million in seismically shot, undeveloped acreage.
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