Pace Oil & Gas, AvenEx Energy and Charger Energy to Combine and Form Dividend Paying Corporation
Pace Oil & Gas Ltd. (PCE.TO), AvenEx Energy Corp. (AVE.TO) and Charger Energy Corp. (CHX.V) have entered into an agreement to form a dividend paying corporation to be named "Spyglass Resources Corp." (SPY.TO) Spyglass will have a balanced commodity profile and sustainable business model underpinned by 18,000 boe/d of stable, low decline oil and gas production and will be led by an experienced management team.
In conjunction with the Merger, AvenEx has reached a binding agreement for the sale of its Elbow River Marketing business for aggregate cash proceeds of $80 million, subject to regulatory approvals, customary closing conditions and adjustments. The Elbow River Sale is expected to close by mid-February 2013.
Spyglass will have approximately 129 million common shares outstanding upon completion of the Merger and will be listed on the TSX under the symbol SGL. Spyglass will be managed by the current Charger team, led by Tom Buchanan as CEO (former President and CEO of Provident Energy Trust) and Dan O'Byrne as President (former COO of Provident Energy Trust).
Avenex is at $3.32 and Charger Energy is at 34 cents.
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