IPC will acquire shares and assets of Canadian BlackPearl Resources under the deal. Credit: zeesstof.

International Petroleum (IPC) has agreed to acquire all shares of Canadian oil and natural gas company BlackPearl Resources, creating an entity with an enterprise value of $1.36bn.

The acquisition will add the Canadian asset base of BlackPearl to IPC’s existing portfolio of Canadian and international assets.

Assets being acquired include Onion Lake in Saskatchewan, 80,000boepd Blackrod steam-assisted-gravity-drainage (SAGD) oil sands project in Alberta, Canada.

Alongside these assets, the combined company will have IPC’s Suffield Area in Alberta, Bertam field in Malaysia, as well as Paris Basin and Aquitaine Basin in France.

Under the deal, BlackPearl shareholders will be entitled to receive 0.22% of an IPC share for each unit held. This translates to an acquisition price of C$1.85 a share.

The transaction is slated close in December Subject to closing conditions, including receipt of shareholder approvals and regulatory approvals.

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“With this transformational acquisition, IPC will more than double its total 2P reserves, with an increased oil weighting up from 42% to 74%.”

International Petroleum CEO Mike Nicholson said: “With the completion of this transformational acquisition, IPC will more than double its total 2P reserves, with an increased oil weighting up from 42% to 74%.

“Total 2P reserves and contingent resources of IPC increase close to six times. IPC’s 2P reserves life is increased by seven years and daily average net production is expected to increase by more than 50% in the years ahead compared to IPC today.”

The combined company will have proven and probable (2P) reserves of 291.5 million barrels of oil equivalent.

For the first half of this year, the combined entity’s production stood at 44,500 barrels of oil equivalent per day (boepd).

BlackPearl’s Onion Lake property comprises a 12,000boepd heavy oil thermal project with reserve life of more than 20 years. The company also produces 2,000boepd of conventional heavy oil with its working interest partner.