International Petroleum Corporation (IPC) has announced the proposed acquisition of Cor4 Oil Corp. in Canada for asset consideration of approx. USD 62 million (CAD 84 million). The Acquisition includes total proved plus probable (2P) reserves of 15.9 million barrels of oil equivalent (MMboe) as at December 31, 2022. The assets to be acquired have forecast average net production of approx. 4,000 barrels of oil equivalent per day for 2023 and include an inventory of drilling locations, close to IPC’s current area of operations in southern Alberta.
Mike Nicholson, IPC’s Chief Executive Officer, comments: 'We are very pleased to announce today the complementary acquisition of almost 16 MMboe of 2P reserves adjacent to our Suffield property in Alberta, Canada, through the proposed acquisition of Cor4, a private company. The producing assets to be acquired are complementary not only to our Suffield assets but in addition, to a recent land acquisition that IPC concluded in the fourth quarter of 2022. Following these acquisitions, we now have over 25 drilling inventory locations on the Ellerslie play fairway that extends from the west of our Suffield asset, to our new land acquisition and into the Cor4 property. IPC plans to drill a total of six wells on this exciting new play in 2023.'
IPC Canada and Cor4 have entered into an agreement pursuant to which IPC Canada has agreed to make an offer to shareholders of Cor4 to purchase all of the issued and outstanding Cor4 common shares, and options and warrants convertible into Cor4 common shares, based on an asset consideration of USD 62 million (CAD 84 million) (the Offer). Shareholders representing approx. 98% of the fully diluted Cor4 common shares have entered into support agreements, agreeing to tender their shares into the Offer.
The Acquisition remains subject to regulatory approvals and is expected to complete by the end of Q1 2023. Further details on the Acquisition will be provided at IPC’s Capital Markets Day presentation on Tuesday, February 7, 2023.