Painted Pony acquires UGR Blair Creek from ARC Financial, EnCap

Ted Liu

Painted Pony Petroleum Ltd. (TSX: PPY) has completed previously announced acquisition of all of the issued and outstanding shares of UGR Blair Creek Ltd. from Unconventional Resources Canada, LP, a portfolio of ARC Financial Corp. and EnCap Investments, L.P., for $272.3 million, consisting of the issuance of 41 million common shares of Painted Pony at deemed price of $5.47 for $229.6 million and the assumption of UGR’s net debt of approximately $48 million on closing and the payment of certain transaction costs.

UGR operates high working interest Montney assets with established production, infrastructure and land holdings jointly with and adjacent to Painted Pony’s assets in northeast British Columbia.

ARC Energy Fund 6 Canadian Limited Partnership, ARC Energy Fund 6 United States Limited Partnership, ARC Energy Fund 6 International Limited Partnership, ARC Capital 6 Limited Partnership, ARC Energy Fund 5 Canadian Limited Partnership, ARC Energy Fund 5 United States Limited Partnership and ARC Energy Fund 5 International Limited Partnership collectively exercise control or direction over an aggregate of 19,934,121 common shares, representing an aggregate of approximately 12.38% of the issued and outstanding shares.

EnCap Energy Capital Fund VII, L.P., EnCap Energy Capital Fund VI, L.P. and EnCap Energy Capital Fund VI-B, L.P. now exercise control or direction over an aggregate of 19,927,302 common shares, representing an aggregate of approximately 12.38% of the issued and outstanding shares.

Paul Beitel, Managing Director at ARC Financial Corp., and George Voneiff, CEO of Unconventional Resources, LLC have been appointed to the Painted Pony board of directors effective May 16, 2017. Each of ARC and EnCap is entitled to designate one person to serve on the board, so long as each of ARC and EnCap continue to hold more than 50% of the total number of acquisition shares beneficially held by each of ARC and EnCap on closing.

photo credit: Painted Pony