Kallisto Energy plans Cumberland Oil acquisition
Kallisto Energy has entered into an acquisition agreement with Cumberland Oil.
Business negotiations between Kallisto Energy and Cumberland Oil have resulted in an acquisition agreement.
Kallisto will be taking on all of Cumberland's outstanding common shares, with a resulting 65 per cent to 35 per cent split of ownership respectively between the two firms' shareholders of the pro forma company.
Both sets of directors supported the move, urging shareholders to approve the transaction.
According to Kallisto, the benefits for the combined firm will include a credit facility of $8.8 million (£5.6 million) for capital expenditure projects, a significant land base and various asset resources with near-term drilling prospects - such as the Cardium light oil deposits at Pembina.
Steven Cloutier and Martin Hislop, current directors of the board at Cumberland, are expected to take on new roles within the leadership structure of Kallisto.
The enterprises, which are both based in Calgary, said the acquisition will ensure "an exceptional opportunity to create substantial value for their respective companies and shareholders".
Posted by David Gleck
Source: Kallisto Energy press release, August 15th