Petrus Resources to Buy Alberta Oil Assets for $24.4 Million

The Canadian energy firm announced Wednesday that the acquisition is expected to boost its output by approximately 2,000 barrels of oil equivalent per day. By targeting the established Cardium light oil reserves, Petrus aims to solidify its operational footprint in one of Western Canada’s most reliable energy corridors.

Financing the Expansion

To fund the purchase, Petrus has restructured its financial obligations, amending its existing credit facilities to include a new $35 million non-revolving term facility. This specialized credit line is earmarked specifically for the transaction. Additionally, the company is raising capital through a two-pronged equity offering totaling C$10 million:

• A C$6 million private placement of 3.4 million shares at C$1.75 per share, managed by Haywood Securities.
• A non-brokered private placement of 2.3 million shares intended to raise an additional C$4 million.

The transaction is scheduled to finalize on Feb. 19, contingent upon standard closing conditions. This move represents a strategic pivot for Petrus, utilizing a combination of fresh debt and equity to secure production growth amid evolving market dynamics in the Canadian oil patch.