Marquee Energy Ltd. has entered into an agreement to acquire light oil assets complementary to the Company's existing core asset base and infrastructure at Michichi. The strategic acquisition includes approximately 330 boe/d (79% oil & NGLs) and 34 net sections of land containing Banff rights that are contiguous with Marquee's position in the area. Consideration is approximately $16.5 million, including $14.5 million cash and the conveyance and exchange of certain non-core gas assets valued at approximately $2 million (subject to customary closing adjustments).
Marquee will initially fund the Acquisition through a combination of working capital, bank debt, and with the proceeds of a recently closed non-core asset disposition. The Transaction is effective as of February 1, 2015 and is expected to close on or before March 30, 2015. Completion of the Acquisition is subject to standard regulatory approvals.