IPC to pursue $62 million acquisition in Canada
(WO) — International Petroleum Corporation (IPC) announced a proposition to acquire Canada’s Cor4 Oil Corp. for roughly $62 million. The acquisition includes total proved plus probable (2P) reserves of 15.9 MMboe as of December 31, 2022. The acquired assets have a forecast average net production of about 4,000 boepd for 2023. The acquisition also includes drilling locations close to IPC’s current operation areas in southern Alberta.
According to Mike Nicholson, IPC’s CEO, “the producing assets to be acquired are complementary not only to our Suffield assets but in addition, to a recent land acquisition that IPC concluded in the fourth quarter of 2022. Following these acquisitions, we now have over 25 drilling inventory locations on the Ellerslie play fairway that extends from the west of our Suffield asset, to our new land acquisition and into the Cor4 property. IPC plans to drill a total of six wells on this exciting new play in 2023.”
IPC Canada has agreed to make an offer to shareholders of Cor4 to purchase all the issued and outstanding Cor4 common shares, and options and warrants convertible into Cor4 common shares, based on an asset consideration of $62 million. Shareholders representing approximately 98% of the fully diluted Cor4 common shares have entered into support agreements, agreeing to tender their shares into the Offer.
The Acquisition remains subject to regulatory approvals and is expected to complete by the end of Q1 2023. Further details on the Acquisition will be provided at IPC’s Capital Markets Day presentation on Tuesday, February 7, 2023.
International Petroleum Corp. (IPC) is an international oil and gas exploration and production company with a high quality portfolio of assets located in Canada, Malaysia and France, providing a solid foundation for organic and inorganic growth.