CALGARY, Alberta, April 16, 2018 (GLOBE NEWSWIRE) — Clearview Resources Ltd. (“Clearview”) is pleased to announce that it has completed the acquisition of Bashaw Oil Corp. (“Bashaw”) by way of an amalgamation of Bashaw with a newly incorporated subsidiary of Clearview (proposed acquisition was previously announced March 28, 2018). Pursuant to the amalgamation, Clearview issued 1,560,046 voting common shares to the shareholders of Bashaw in exchange for the cancellation of their common shares of Bashaw. The new amalgamated, wholly-owned subsidiary is named Bashaw Oil Corp.
The Board of Directors of Clearview has made a change in management. Mr. Tony Angelidis has been appointed as President and CEO of Clearview. Mr. Angelidis had been at Bashaw since early 2017, following 33 years of experience at several successful oil and gas entities, most recently as a co-founder of Delphi Energy Corp. Prior thereto, Mr. Angelidis was a co-founder of both Renata Resources Inc. and Prize Energy Corp. and has been an officer and director of publicly listed oil and gas companies since 1993.
Joining Mr. Angelidis at Clearview is Mr. Brian Kohlhammer as Vice President Finance and CFO. Mr. Kohlhammer fulfilled the responsibilities of this role while at Bashaw and at TSX-listed public companies, Delphi Energy Corp. and Renata Resources Inc. with Mr. Angelidis.
Mr. Darcy Ries has been appointed as Vice President Engineering and COO. Mr. Ries also worked at Bashaw since early 2017 alongside Mr. Angelidis and has prior experience with a number of successful oil and gas entities including Grizzly Resources Ltd., Laricina Energy Ltd. and Pengrowth Energy Corp.
As part of the amalgamation, the Board of Directors of Clearview have added Timothy Halpen, P. Eng., to its board. Mr. Halpen was previously a director of Bashaw and is currently COO of a TSX-listed public oil and gas company.
In January 2018, Clearview acquired a 50% working interest in the Windfall property for $3.4 million. Through the amalgamation of Bashaw, Clearview acquires the other 50% working interest and operatorship. Windfall is a high quality, Bluesky Formation, light oil property immediately north of Clearview’s Pembina assets. The two-stage acquisition adds 220 barrels of oil equivalent per day (“boe/d”) comprised of 110 barrels per day (“bbls/d”) of light oil and natural gas liquids and 660 thousand cubic feet per day (“mcf/d”) of natural gas, associated undeveloped lands and oil and gas handling facilities.
Technical review of the Windfall property has concluded that there are up to 16 initial horizontal locations targeting light oil to be drilled. With success on drilling these initial wells, it is expected that there will be additional follow up locations. Secondly, there is reservoir oil recovery upside in the form of waterflooding. A previous owner had successfully implemented a waterflood pilot project that can be further applied in the future development of this property.
The Windfall property represents a second, high quality light oil property, with significant upside, to complement Clearview’s Wilson Creek Cardium Formation, light oil assets. This amalgamation is an additional step in achieving Clearview’s growth strategy and is very synergistic, building on Clearview’s accretive property acquisitions in 2017.
Clearview has also closed the sale of its non-core, non-operated Carmangay property representing approximately 60 bbls/d of production for approximately $3.4 million. Net debt after the amalgamation, incorporating Bashaw’s surplus cash and working capital and closing of this disposition, is expected to be approximately $11.3 million. Clearview’s net debt was $13.9 million at December 31, 2017. Clearview’s credit facility is expected to remain at $21.0 million.
Clearview continues to pursue its growth strategy within its focus area of west central Alberta, including asset or corporate acquisitions, development drilling, production optimization and non-core dispositions. This activity may be funded through existing funds from operations and/or additional equity financing.
After the amalgamation and the non-core disposition, Clearview’s production ranges between 2,200 to 2,250 boe/d with the weighting being approximately 45% for oil and natural gas liquids and 55% for natural gas.