Strathcona Resources Ltd. Announces Closing of Pipestone Energy Corp.
Acquisition
PR Newswire
CALGARY, AB, Oct. 3, 2023
CALGARY, AB, Oct. 3, 2023 /PRNewswire/ - Strathcona Resources Ltd.
("Strathcona") announced today that it has closed the acquisition (the
"Acquisition") of Pipestone Energy Corp. ("Pipestone").
Strathcona
The Acquisition was structured through a plan of arrangement under the
Business Corporations Act (Alberta), where existing Pipestone
shareholders received 0.067967 common shares of Strathcona for each
Pipestone common share.
The Acquisition will result in Strathcona becoming a publicly traded
reporting issuer on the Toronto Stock Exchange under the symbol SCR.
Trading of Strathcona common shares is expected to begin on or about
Thursday, October 5, 2023, at which point Pipestone's shares will be
delisted.
About Strathcona
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. Strathcona's common shares
(symbol SCR) are listed on the Toronto Stock Exchange (TSX) and will
commence trading on the TSX as described in this news release.
For more information about Strathcona Resources, visit
www.strathconaresources.com.
Forward-Looking Information
This news release contains certain forward-looking statements and
forward-looking information (collectively "forward-looking information")
within the meaning of applicable securities laws, which are based on the
Strathcona's current expectations, estimates, projections, assumptions
and beliefs. The use of any of the words "believe", "estimate",
"anticipate", "expect", "plan", "predict", "outlook", "target",
"project", "plan", "may", "could", "will", "shall", "should", "intend",
"potential" and similar expressions are intended to identify
forward-looking information. These statements are not guarantees of
future performance, and involve known and unknown risks, uncertainties
and other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking information.
Forward-looking information in this news release includes, but is not
limited to: the expected timing for the trading of shares of Strathcona
on the TSX and the delisting of Pipestone's shares; and statements
regarding Strathcona's strategy, development, opportunities and future
prospects.
The forward-looking information in this news release is based on certain
assumptions that Strathcona has made in respect thereof as at the date
hereof regarding, among other things: the ability of Strathcona to
satisfy the conditions for the trading of shares of Strathcona on the
TSX in a timely manner; that the amalgamated company's future financial
and operating results will be consistent with the past performance of
Strathcona and Pipestone and the expectations of Strathcona management
in relation thereto; that Strathcona will have the ability to develop
it's crude oil and natural gas properties in the manner currently
contemplated; the estimates of Strathcona's reserves volumes and the
assumptions related thereto (including commodity prices and development
costs) are accurate in all material respects; general economic
conditions, including prevailing commodity prices and prices with
respect to Strathcona's production, carbon prices, interest rates,
inflation rates and exchange rates; prevailing regulatory, tax and
environmental laws and regulations; the availability of capital to fund
Strathcona's future capital requirements, including on terms acceptable
to Strathcona; potential expansion opportunities available to
Strathcona; the ability of Strathcona to obtain equipment, services,
supplies and personnel to carry out its business activities; the ability
of Strathcona to successfully market its business in the areas in which
it operates; and that counterparties will comply with contracts in a
timely manner.
Although Strathcona believes the expectations and material factors and
assumptions reflected in the forward-looking information contained
herein are reasonable as of the date hereof, there can be no assurance
that these expectations, factors and assumptions will prove to be
correct. The forward-looking information is not a guarantee of future
performance and is subject to a number of known and unknown risks and
uncertainties that could cause actual events or results to differ
materially, including, but not limited to: the ability of Strathcona to
satisfy the conditions for the commencement of trading of shares of
Strathcona on the TSX; the failure to achieve the anticipated benefits
of the Acquisition; adverse changes in general economic conditions,
including fluctuations in interest rates, inflation rates and exchange
rates, and volatility in commodity prices, including crude oil and
natural gas prices; operational risks and uncertainties associated with
oil and gas activities, including unexpected formations or pressures,
premature declines of reservoirs, fires, blow-outs, equipment failures
and other accidents, uncontrollable flows of crude oil, natural gas or
well fluids, and pollution and other environmental risks; adverse
weather conditions; natural catastrophes; changes to laws, regulations
and government policies, including environmental (including climate
change), royalty and tax laws, regulations and policies, or the
interpretation thereof; actions by governmental authorities, including
the imposition or reassessment of, or changes to, taxes, fees, royalties,
duties, tariffs, quotas and other government-imposed compliance costs;
the sufficiency of budgeted capital expenditures in carrying out planned
activities; availability of pipeline capacity and other logistical
constraints; labour and material shortages; non-performance or default
by counterparties to agreements entered into in respect of Strathcona's
business; competitive actions of other oil and gas companies; labour and
material shortages; the ability to access capital on favourable terms;
changes in credit ratings; counterparty credit risk; technology and
cybersecurity-related risks; risks relating to the conflict between
Ukraine and Russia and the impacts on, among other things, global supply
and demand, commodity prices, inflation and interest rates and supply
chains; and certain other risks and uncertainties set forth in the
management information circular of Pipestone dated August 25, 2023 that
was prepared in connection with the special meeting of the shareholders
of Pipestone held on September 27, 2023. This list of risk factors
should not be construed as exhaustive.
Strathcona believes the expectations reflected in the forward-looking
information in this news release are reasonable, but no assurance can be
given that these expectations will prove to be correct, and readers
should not place undue reliance on such forward-looking information.
Such forward-looking information is made as of the date of this news
release and Strathcona does not undertake any obligation to publicly
update or revise any forward-looking information, whether as a result of
new information, future events or otherwise, except as required by
applicable securities laws. The forward-looking information contained
herein is expressly qualified in its entirety by this cautionary
statement.
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SOURCE Strathcona Resources Ltd.
/CONTACT: Media inquiries: communications@strathconaresources.com; Investor inquiries: info@strathconaresources.com
(END) Dow Jones Newswires
October 03, 2023 11:56 ET (15:56 GMT)
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