Reuters: Mergers News: UPDATE 1-Cequence Energy to buy Open Range for C$97 mln

Reuters: Mergers News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-Cequence Energy to buy Open Range for C$97 mln May 31st 2012, 21:57 Thu May 31, 2012 5:57pm EDT May 31 (Reuters) - Cequence Energy Ltd said it will buy Open Energy Corp in an all-stock deal that values the oil and gas company at about C$97 million, as it looks to tap into liquids-rich natural gas assets in Alberta. Open Range stockholders will get 1.065 shares of Cequence for each share they own. Based on the closing price of Cequence's stock on Thursday, the offer stands at nearly C$1.30 a share -- 26 percent higher than Open Range's closing on the Toronto Stock Exchange. Cequence said it expects the deal to add about C$57 million to its cash flow on a pro-forma basis and allow it to develop properties in the Deep Basin in west central Alberta. The combined company is expected to produce about 11,200 barrels of oil equivalent per day (boe/d) on average in 2012 and exit the year at 15,000 boe/d. Open Range's CEO Scott Dawson will join Cequence's board and the combined company is expected to be headed by Cequence's CEO Paul Wanklyn.

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