Pieridae Energy Closes the Acquisition of Shell Canada’s Foothills Assets
In the first six months of 2019, the Assets produced approximately 28,634 barrels of oil equivalent per day (“BOE/d”) consisting of approximately 119 million cubic feet per day (“MMcf/d”) of natural gas, 5,656 barrels per day (“bbl/d”) of natural gas liquids (“NGL”) and 3,163 bbl/d of condensate and light oil. Pieridae also acquired three deep cut, sour gas processing plants (Jumping Pound, Caroline and Waterton), with a combined capacity of approximately 750 MMcf/d (currently operating with 420 MMcf/d of spare capacity), a 14% working interest in the Shantz sulphur forming plant, and approximately 1,700 kilometres of pipelines. Pieridae will be using or has used the net proceeds of the Term Loan to: (i) partially fund the purchase price payable for the Acquisition, (ii) repay its current outstanding debt to AIMCo pursuant to the term loan entered into with AIMCo on December 20, 2018 (the “AIMCo Term Loan”), (iii) fund letters of credit required for existing and purchased assets and, (iv) satisfy all fees and expenses associated with the Term Loan and Acquisition. Pieridae has also made assumptions regarding the general stability of the economic and political environment in which Pieridae operates; the ability of Pieridae to retain qualified staff, equipment and services in a timely and cost efficient manner; the ability of Pieridae to operate the Assets in a safe, efficient and effective manner; the timing and costs of pipeline, storage and facility construction and expansion and the ability of Pieridae to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Pieridae operates; timing and amount of capital expenditures, future sources of funding, production levels, weather conditions, success of exploration and development activities, access to gathering, processing and pipeline systems, advancing technologies, and the ability of Pieridae to successfully market its oil and natural gas.