Deals this week: Pengrowth Energy, Genesis Energy, Marathon Oil

Pengrowth Energy has agreed to dispose certain Swan Hills light oil assets located in north central Alberta, Canada, for a cash consideration of $134.7m.

The proved plus probable reserves of the assets were estimated to be 31 million barrels of oil equivalent as of December 2016. The average production from the assets during the fourth quarter of 2016 was approximately 4,920 barrels of oil equivalent a day (boed).

Pengrowth Energy has appointed Deloitte Corporate Finance as financial advisor and Burgess Energy Advisors and Shea Nerland Law as legal advisors for the transaction.

Scheduled for completion on 31 May, the sale will enable Pengrowth to further reduce its debt.

Genesis Energy plans to raise $124m through the issue of four million shares in a public offering. Underwriters have been granted a 30-day option to buy up to an additional 600,000 shares.

Genesis has appointed Wells Fargo Securities and Robert W Baird & Co as joint book-running managers, and Akin Gump Strauss Hauer & Feld as legal advisor for the offering, which is scheduled for completion on 24 March.

The amount raised from the offering is intended to be used by the company for general partnership purposes.

Marathon Oil Corporation has agreed to buy approximately 21,000 net acres located largely in the Permian's Northern Delaware Basin, New Mexico, US, from Black Mountain Oil & Gas and other private entities. The deal involves a purchase consideration of $700m.

The acreage holds total resources of approximately 550mmboe with average production of 400boed.

Scheduled for completion in the second quarter of this year, the transaction will increase Marathon Oil’s acreage position in the Permian Basin to approximately 91,000 net acres.

Dominion Resources has announced the pricing of the public issue of 3.9% 2015 Series B senior notes due October 2025.

The company intends to raise gross proceeds of $100m from the offering. Morgan Stanley & Co. International has been appointed as the book-running manager for the offering.

The amount raised from the issue is intended to be used by Dominion to fund capital expenditures and future acquisitions, and retire or redeem debt securities and for general corporate functions.

Gastar Exploration has completed the acquisition of additional STACK oil and gas leasehold located in Kingfisher County, Oklahoma, US.

The $51.4m deal was funded by Gastar through a tack-on issuance of additional $75m convertible notes, due 2022.

The average production from producing wells of the leasehold is approximately 330boed. The transaction increased Gastar Exploration’s acreage position in the STACK Play to 62,370 net surface acres.