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Pieridae closes acquisition of Alberta producer to support Goldboro LNG project

The Calgary, Alberta-based LNG company Pieridae Energy Ltd. closed its acquisition of all the outstanding shares of western Canadian oil and gas producer Ikkuma Resources Corp., allowing Pieridae to secure gas resources for its planned Goldboro LNG facility.

Ikkuma shareholders approved the deal Dec. 17, and the merger was approved by the Court of Queen's Bench of Alberta, according to a Dec. 20 news release. The assets include producing and gas-prone reserve and resource properties, mostly in the central Alberta Foothills area. As part of the deal, certain interests in Cardium light-oil-focused Alberta Foothills acreage were also transferred to Briko Energy Corp., a newly formed private corporation.

Ikkuma shareholders are set to receive 0.1926 Pieridae common share, 0.1 Briko Energy share and 0.1 common share purchase warrant of Briko Energy for each Ikkuma share. Ikkuma shareholders also now hold 100% of Briko Energy. Ikkuma shares will no longer trade on the TSX Venture Exchange.

With the deal closing, Pieridae entered into a C$50 million senior secured term loan facility with Alberta Investment Management Corp. The term loan has a maturity date of Sept. 30, 2019, and proceeds were used to pay down Ikkuma's outstanding debt.

Pieridae is engaged in natural gas exploration and production and is developing the Goldboro LNG facility in Nova Scotia. The Goldboro facility is designed to produce 10 million tonnes per annum of LNG to be exported to European markets.