Cardinal Energy completes Pinecrest acquisition for $142.5m

Canada-based Cardinal Energy has completed the previously announced acquisition of Pinecrest Energy in a transaction worth about $142.5m.

According to the company, the assets acquired from Pinecrest are producing about 3,300boe/d at present and the closure will enable it to produce about 14,500boe/d.

Pinecrest’s assets acquired by Cardinal included about 170boe/d of non operated light oil and about 152,900 acres of undeveloped land.

The assets also included total proved reserves of 350mboe and total proved plus probable reserves of 430 mboe as well as about $300m of tax pools.

When the announcement was made in February, Cardinal said it will acquire Pinecrest pursuant to a plan of arrangement with Pinecrest and Virginia Hills Oil.

Cardinal also signed an agreement to sell a gas plant and associated infrastructure to a third party for $12.8m and hopes to close the sale in mid-November.

In April, Pinecrest and Cardinal completed the reorganisation of the business of Pinecrest pursuant to a plan of arrangement involving Cardinal and Virginia Hills Oil.

As per the agreement, about 90% of the oil and gas assets previously owned and operated by Pinecrest have been transferred to Virginia Hills and all of the outstanding shares of Pinecrest have been sold to Cardinal for $23.5m.