Canadian 88 Energy To Acquire RMX Exploration
Canadian 88 Energy Corp. has entered into an agreement to acquire all of the issued and outstanding shares of RMX Exploration Ltd. RMX is a private oil and gas company. Almost all of the RMX assets are assets in which both Canadian 88 and RMX have a working interest. The boards of directors of Canadian 88 and RMX have approved the transaction. The RMX board of directors is recommending that RMX shareholders accept the offer.
The net consideration to be paid by Canadian 88 for all of the outstanding RMX shares is approximately $22.2 million in cash, after RMX debt and various contractual obligations of $3.9 million. The transaction will be effected by way of private contractual arrangements between Canadian 88, RMX and each RMX shareholder. To date RMX shareholders holding a total of approximately 70% of the issued and outstanding RMX shares have executed the share purchase agreement that has been approved by the RMX board of directors. The transaction is subject to all of RMX shareholders becoming bound by the terms of such share purchase agreement.
Canadian 88 operates the RMX assets which will add estimated net production of 950 boe per day (6:1 equivalent basis) in Q4 2002 and 1.9 mmboe of proved reserves to Canadian 88's operations and assets.