Colonia to Acquire Duce Oil

23 November 2009 (Last Updated November 23rd, 2009 18:30)

Colonia Energy has agreed a $33m (C$35m) acquisition of Duce Oil to increase its light oil assets. Junior oil and gas explorer Colonia said the cash and stock acquisition would provide it with an important position with regard to Bakken light oil resources. The company will of

Colonia Energy has agreed a $33m (C$35m) acquisition of Duce Oil to increase its light oil assets.

Junior oil and gas explorer Colonia said the cash and stock acquisition would provide it with an important position with regard to Bakken light oil resources.

The company will offer $26.4m (C$28m) in cash to Duce stakeholders and issue 15 million of its common shares at 20 Canadian cents per share price.

Colonia will also pay $3.8m (C$4m) in cash to acquire a working interest of Duce's minority partners.

The company will undertake a bought deal financed by selling 175 million subscription receipts at a price of 20 Canadian cents apiece to raise $33m (C$35m).