Delphi Energy acquires natural gas and light oil assets in Canada

Delphi Energy Corp., a Canada-based oil and natural gas exploration and production company, has acquired natural gas and light oil assets and related infrastructure strategically located within Delphi's core property in Hythe, Alberta, Canada for a cash consideration of CAD10 million ($9.21 million).

Announcement (September 30, 2009):

Delphi has entered into an asset exchange agreement to acquire natural gas and light oil assets and related infrastructure strategically located within Delphi's core property in Hythe, Alberta, Canada.

The consideration to be paid for the acquisition consists of certain non-core producing assets and related infrastructure of Delphi and a net cash purchase price of CAD10 million ($9.21 million).

The transaction has an effective date of July 1, 2009 and is expected to close on or about November 3, 2009.

Deal Value (US$ Million) 9.21
Deal Type                Acquisition
Sub-Category             Asset Purchase
Deal Status              Completed: 2009-11-03

Deal Participants

Target (Company)   Undisclosed Company - Natural Gas and Light Oil Assets - Canada
Acquirer (Company) Delphi Energy Corp.
Vendor (Company)   Undisclosed Company

Deal Rationale

The transaction increases Delphi's corporate production capacity and increases the conventional multi-zone development opportunities within Hythe and the ability to continue its strategy of adding low cost production and reserves through multi-zone exploitation. The transaction adds key infrastructure for future expansion with a minor working interest in two sweet and one sour natural gas plants, multiple compression and separation stations and approximately 120 kilometres of pipelines that gather and transport natural gas from an extensive land base and interconnect the natural gas plants.

Related terms: acquisition, alberta, canada, corporate, energy, expansion, exploration, gasoline, natural gas, oil, property