Deals this week: Birchcliff Energy, QEP Resources, H2O Midstream

Birchcliff Energy has agreed with Encana Corporation to acquire Gordondale assets in the Montney / Doig Natural Gas Resource play in the Peace River Arch area of Alberta, Canada.

The $487.32m transaction will be funded through a combination of finance and credit facilities.

The assets extend across 91,833 gross (54,206 net) acres of land and include two light oil batteries and a network of sour gas gathering and compression systems.

Birchcliff has appointed National Bank Financial and Cormark Securities as financial advisors, whereas RBC Capital Markets is the financial advisor to Encana.

The deal is scheduled for completion on or before 28 July 2016.

QEP Resources has announced the pricing of a public issue of 20 million shares, at a price of $18.35 per share. The company intends to raise $367m through the offering.

Additionally, underwriters have been granted a 30-day option to buy an additional three million shares. The public offering is scheduled for closure on 27 June 2016.

The amount raised from the issue is intended to be used by QEP to partly fund the exploration and production activities as well as acquisition of assets in the northern Midland Basin, and to reduce liabilities.

H2O Midstream has secured a $100m equity commitment from EIV Capital and a group of EIV’s institutional partners.

H2O Midstream is an oil and gas midstream company engaged in the acquisition, construction and operation of water midstream infrastructure including gathering systems and transmission pipelines as well as treatment, storage and disposal facilities.

The investment will allow H2O Midstream to pursue oil and gas opportunities associated with water infrastructure across North America.

QEP Energy Company has agreed to spend $600m to acquire oil and gas assets in Martin County of Permian Basin, Texas, US, from an undisclosed company.

The assets occupy an area of approximately 9,400 net acres, which include 430 potential horizontal drilling locations.

Scheduled for completion in September 2016, the deal will allow QEP Energy to expand its asset base in the central northern Midland Basin.

Energen Corporation has agreed to dispose its non-core oil and gas assets in Delaware Basin, Texas and San Juan Basin, Colorado, US. The estimated value of the deal is $551.7m.

The proven reserves of the assets have been estimated at 55mmboe as of December 2015.

Scheduled for completion by mid-August 2016, the transaction will allow Energen to conduct drilling and development activities as well as acquisitions in Permian Basin.