PetroBakken Updates on Rondo Petroleum Acquisition
PetroBakken provided an update regarding the acquisition agreement previously announced on March 2, 2010 between PetroBakken and Rondo Petroleum.
PetroBakken has been informed by Rondo that they have received signed shareholder resolutions approving the Agreement from 100 percent of their shareholders, signifying approval of the acquisition of Rondo by PetroBakken. With this receipt of unanimous Rondo shareholder approval, PetroBakken plans to close the acquisition of Rondo on March 12, 2010. Closing remains subject to certain conditions, including the receipt of court approval.
Pursuant to the Agreement, PetroBakken has agreed to acquire all of the outstanding shares of Rondo. Consideration for the Transaction is comprised of $88.7 million cash, the issuance of approximately 5.5 million PetroBakken shares and the assumption of Rondo's debt. The Transaction will increase PetroBakken's operational presence and drilling inventory within the exciting Cardium light oil resource play and complements our strong growth platform centered on high-netback light oil resource plays.