Deals this week: Baytex Energy, Gran Tierra Energy, Tesoro Logistics

Baytex Energy has agreed to acquire oil sands leases located in the Peace River area of northern Alberta, Canada, from an undisclosed company.

The deal involves a cash consideration of $48.29m, which will be funded by the company through issue of shares.

The leases currently produce at a rate of approximately 3,000 barrels of oil equivalent a day (boed) from approximately 265,600 net acres of land.

Scheduled for completion by the end of this year, the deal will allow Baytex Energy to strengthen its oil assets portfolio in Alberta.

Gran Tierra Energy intends to raise $130m through the issue of 43.3 million shares at a price of $3 per share, in a bought-deal public offering.

The underwriters including TD Securities, Peters & Co, GMP Securities, Morgan Stanley Canada, CIBC World Markets, Canaccord Genuity, Cormark Securities, HSBC Securities (Canada), Natixis Securities Americas, and Paradigm Capital have been granted a 30-day option to buy up to an additional 6.5 million shares.

Gran Tierra Energy has appointed Scotia Capital, RBC Capital Markets and Dundee Capital Markets as book-runners for the offering.

The proceeds from the offering are intended to be used by the company to repay borrowings under its revolving credit facility, as well as to fund appraisal, development and potential acquisitions.

The public issue is scheduled for completion on or before 29 November.

Tesoro Logistics, through its subsidiary QEP Field Services, has agreed to acquire certain midstream assets located in North Dakota, US, from Whiting Oil and Gas Corporation.

The $700m deal involves assets such as 650-mile crude oil, natural gas and produced water gathering pipelines and two natural gas processing plants in the Williston Basin, North Dakota.

Tesoro Logistics has concurrently completed the acquisition of terminalling and storage assets in Martinez, California, from a subsidiary of Tesoro Corporation for $400m.

"Gran Tierra Energy intends to raise $130m through the issue of 43.3 million shares at a price of $3 per share, in a bought-deal public offering."

Tesoro Logistics has retained RBC Capital Markets Corporation and Norton Rose Fulbright US LLP as financial and legal advisors for the transaction, respectively.

Scheduled for completion in the first quarter of 2017, the transaction will allow Tesoro Logistics to fortify its midstream assets portfolio in North Dakota.

Swift Energy Company has agreed to dispose Lake Washington field located in Plaquemines Parish, south-east Louisiana, US, for $40m.

The field extends across an area of approximately 14,000 net acres of land containing 23 producing wells.

The proceeds from the sale are intended to be used by Swift Energy to repay revolving facility, improve its liquidity, strengthen its balance sheet and execute its development plans in 2017.

The divestiture is scheduled to be completed in early December.

Armour Energy intends to raise $25.65m through the issuance of 15% convertible notes, which will yield semi-annual interest payments until their maturity on 30 September 2019.

Armour Energy has appointed Bizzell Capital Partners as placement agent for the offering, which is scheduled for closure on or before 30 November.

The proceeds from the placement are intended to be used by the company to fund its Kincora field development activities, to repay creditors, and for general working capital requirements.