Pipestone Energy Approves Arrangement with Strathcona Resources to Create New Canadian Energy Leader
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Pipestone Energy said the company’s shareholders have voted to approve the arrangement with Strathcona Resources Ltd., which will see Pipestone combined with Strathcona to create one of Canada’s largest energy producers.
Upon closing, Strathcona and Pipestone will be amalgamated to form a new corporation, which will continue as Strathcona Resources Ltd. The arrangement is expected to close on October 3, 2023, subject to the receipt of a final order from the Court of King’s Bench of Alberta with respect to the arrangement and the satisfaction or waiver of customary closing conditions.
“On behalf of Pipestone’s board, I thank our shareholders for their participation in this process and their support for this value-creating transaction,” said Gord Ritchie, chair of the Pipestone Board.
When completed, the arrangement will enable shareholders to participate in the upside of a much larger and more diversified producer with a well-positioned reserves base and much longer reserves life. The arrangement will also provide better access to, and lower cost of, capital, an extended tax shelter, and a potential positive re-rating by markets.
Pipestone is an oil and gas exploration and production company focused on developing its large contiguous and condensate rich Montney asset base in the Pipestone area near Grande Prairie. Pipestone is committed to building long term value for its shareholders while maintaining the highest possible environmental and operating standards, as well as being an active and contributing member to the communities in which it operates. Pipestone has achieved certification of all its production from its Montney asset under the Equitable Origin EO100TM Standard for Responsible Energy Development.
Strathcona Resources is one of North America’s fastest growing oil and gas producers with operations focused on thermal oil, enhanced oil recovery and liquids-rich natural gas. Strathcona is built on an innovative approach to growth achieved through the consolidation and development of long-life oil and gas assets.
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