Suroco Energy Agrees to Acquire NCT
Calgary-based Suroco Energy (TSX-V: SRN) has entered into a letter of agreement for the arm's length acquisition of NCT, which operates in Colombia and Mexico, Suroco said in a statement.
NCT holds assets in Colombia's developing Suroriente block, which produces 172b/d for NCT's share. NCT also holds risk-production contracts for the operation of non-developed and inactive fields at Arjona and Hato Nuevo in Colombia.
According to the terms of the agreement, Suroco intends to acquire all of the issued and outstanding participation units of NCT in exchange for 11.6mn common shares at a deemed price of US$0.80 per share.
The deal is subject to regulatory approval.
A Suroco company spokesperson told BNamericas no regulatory problems were expected but could not confirm when the deal would close.
NCT has offices in Caracas and Bogota. The acquisition would allow NCT to carry on as a wholly owned subsidiary of Suroco with the current management of NCT continuing to operate.
NCT's three directors - Manuel Trevino, Fernando Puig and Eduardo Lima - have been involved in the Venezuelan oil industry for over 20 years. Puig is a former president of state oil company PDVSA's gas unit PDVSA GAS.
Upon completion of the deal, Trevino, Puig and Lima will join the Suroco board.
As of May 8, NCT had cash on hand of US$496,394 and no long-term debt and US$1.63mn net working capital as of April 30.
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