IN THE NEWS / Poco Petroleums Takes Over Pan East Petroleum In $163
Million Deal
CALGARY (CP -- Poco Petroleums Ltd., a Calgary oil and gas company, is spending $163 million in cash and shares to take over Pan East Petroleum Corp. in a move to grow its energy business in Western Canada. Poco announced Monday it is offering a cash and share bid worth about $2.65 for each Pan East share -- about 11 per cent more than the company's closing stock market price last Friday.
Poco said the deal has been endorsed by Pan East's board and the company's key shareholder, a group that owns about 20 per cent of the Calgary company.
Calgary-based Poco's exploration program is focused in west-central Alberta, while Pan East also has nearby assets, producing 3,100 barrels of oil equivalent a day. Poco wants to expand its holdings in the area to increase production of natural gas.
"The Pan East transaction is consistent with Poco's business plan, which continues to focus on the exploration, development and acquisition of natural gas assets in the deeper, more prolific portion of the western Canadian sedimentary basin," Poco said in a release.
"Poco sees significant exploration potential in the Pan East assets and believes that this acquisition gives it a strategic advantage in expanding Poco's core area further west to a deeper, less explored part of the basin."
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