PanCanadian Purchases Causeway Energy's Assets
PanCanadian Petroleum Limited has entered into an arrangement agreement to purchase the shares of Causeway Energy Corporation pursuant to a plan of arrangement for $65 million Cdn, plus the assumption of $4 million of Causeway debt. The deal is subject to Causeway shareholder approval and is expected to close later this summer.
The acquired assets include Causeway Energy's U.S. and southern Saskatchewan properties, which include approximately 210,000 acres of undeveloped land. The acquisition adds daily production of 8.5 million cubic feet per day of natural gas and reserves of 80 billion cubic feet of gas on a proven and one-half probable basis. A 100 percent interest in the cross-border Chinook Pipeline is also included in the deal.