By Tyler Marr

BlackPearl Resources to be acquired by International Petroleum Corp.

Oct 10, 2018 | 12:00 PM

BlackPearl Resources, which manages heavy oil operations in the Onion Lake region, was acquired by International Petroleum Corp. (IPC) in an all-stock transaction.

IPC will acquire all of the shares of BlackPearl based upon a share exchange ratio of 0.22 shares of IPC for each BlackPearl share. Both boards of directors unanimously approved the move.

In a news release, BlackPearl CEO John Festival said the transaction will be “very beneficial” to shareholders. 

“The combined company will have the financial strength to potentially accelerate development of BlackPearl’s exciting growth projects,” he said. 

IPC CEO Mike Nicholson, in the release, welcomed the addition of a “high calibre team of BlackPearl management and operational professionals with a long track record of value creation, to complement the existing IPC team.”

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IPC chairman Lukas H. Lundin said now is the right time in the resource cycle to be pursuing acquisitions of strategic oil and gas assets.

IPC will acquire the Canadian asset base of BlackPearl to combine with IPC’s current national and international assets. BlackPearl has assets in Onion Lake, projects in the Suffield, Alta. area and the Blackrod SAGD Project in Alberta, Bertram Field in Malaysia, and the Paris Basin and Aquitaine Basin in France.

The transaction is subject to approval by the shareholders of both companies and certain regulatory approvals, with completion anticipated in December 2018.

tyler.marr@jpbg.ca

On Twitter: @JournoMarr