Bonterra Energy Corp. has entered into a purchase and sale agreement dated February 19, 2015 to acquire certain oil and gas assets from a senior oil and gas producer. The Assets are Cardium focused in the Pembina Area of Alberta, including upper zones in the Belly River and Edmonton Sands, with a production base that is complementary to current Bonterra acreage, and which provides additional inventory of long-term drilling locations.
The cash consideration to be paid by Bonterra is to be initially financed by a combination of working capital and debt. The Acquisition will have an effective date of January 1, 2015 and is presently expected to close on or before April 15, 2015. Although the Agreement is binding between the parties, completion of the Acquisition is subject to standard regulatory approvals.