A partner in a four-company joint venture exploring the North Slope is being acquired by an independent U.K. exploration and production company for around C$240 million.
Calgary-based Bow Valley Energy Ltd. said on Feb. 16 that Dana Petroleum Plc. would acquire the company, including nearly C$200 million in debt and other liabilities.
The Bow Valley board of directors unanimously approved the deal with Dana, but lenders, company shareholders and Canadian regulators must still approve the deal.
Bow Valley operates in the North Sea, but also holds acreage in Alaska through a joint venture led by Brooks Range Petroleum Corp. Late last year, Bow Valley froze its interest in an exploration prospect in the Gwydyr Bay area north of Prudhoe Bay.
Bow Valley still holds a 20 percent interest in the Tofkat prospect east of Nuiqsut.
Dana, based in Aberdeen, is focused on the North Sea, and prospects in Egypt.
“The acquisition of Bow Valley is directly in line with Dana’s successful strategy of growing reserves and production in its core operating areas through both exploration and acquisition. Dana already has a working knowledge of the North Sea assets of Bow Valley which form a close fit with Dana’s existing North Sea portfolio,” Tom Cross, chief executive officer of Dana said in a prepared statement.
The deal comes in the wake of falling oil prices and weakening credit markets last fall, which lead Bow Valley to form a special committee and hire acquisition and divestment firm Scotia Waterous to help examine various options ranging from partnerships to sale.
Bow Valley plans to hold a special meeting with shareholders in mid-April.
See story in Feb. 22 issue of Petroleum News, available online at noon, Friday, Feb. 20 at www.PetroleumNews.com