Transactions & Cases Detail



Transaction/Case Details

Tamarack Valley Energy Ltd. acquires Spur Resources Ltd.

DATE CLOSED

January 11, 2017

BUSINESS SECTOR

Oil & Gas

LEAD OFFICE

Calgary

VALUE

407.5 Million CAD


OVERVIEW

On January 11, 2017, Tamarack Valley Energy Ltd. ("Tamarack") and Spur Resources Ltd. ("Spur") successfully closed the previously announced arrangement agreement (the "Arrangement Agreement") providing for the acquisition by Tamarack of all the issued and outstanding common shares of Spur, which will hold Spur's Viking oil assets at closing (the "Combination"). Under the terms of the Arrangement Agreement, Tamarack issued an aggregate of 90.1 million common shares of Tamarack and C$57.3 million in cash. Tamarack assumed Spur's net debt, estimated to be C$25.7 million as of November 30, 2016, after accounting for proceeds from the exercise of all outstanding options of Spur, and severance and transaction costs. Based upon the previous 10-day VWAP of Tamarack of C$3.60 per share, the total consideration payable by Tamarack, including the assumption of debt, is approximately C$407.5 million.

The Combination is transformational for Tamarack because it adds concentrated, high netback, light oil-weighted Viking focused assets to Tamarack with operations in southwestern Saskatchewan and southeastern Alberta.

McCarthy Tétrault LLP advised Tamarack with a team led by Sony Gill that included TJ Kang, Craig Spurn, Hass Keshavji, Scott Bergen, Nathan Montgomery, Elaine Sun, and Benjamin Layton.

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