CALGARY, Alberta – Distinction Energy Corp. (“Distinction” or the “Company”) is pleased to announce its commitment to participate as to 50% in a $335 million acquisition, including $15 million in contingency payments based on future commodity prices, entered into by Kiwetinohk Resources Corp. (“Kiwetinohk”) for certain interests in the Simonette area of northwest Alberta (the “Acquisition”). The Acquisition consists of certain multi-zone, oil and liquids-rich natural gas producing assets in the Simonette area of northwest Alberta, including associated infrastructure and additional assets in the Willesden Green and Ferrier areas of Alberta. Currently, the assets to be acquired are producing approximately 10,000 barrels of oil equivalent per day (“boe/d”), weighted 43 percent to liquids.
Distinction and Kiwetinohk, a majority shareholder of Distinction’s issued and outstanding common shares, have agreed through an Acquisition Opportunity Agreement that the Acquisition and the purchase price (subject to adjustments) will be split equally. Distinction’s portion of the acquisition will be financed with cash on hand and a $127.5 million credit facility with ATB Capital Markets (syndicate lead), National Bank of Canada and Bank of Montreal. The Acquisition is anticipated to close in the second quarter and is subject to applicable regulatory approvals and other customary conditions.
ATB Capital Markets has acted as financial advisor to Distinction in connection with the transaction.
About Distinction Energy Corp.
Distinction Energy Corp. is an industry-leading producer of liquids-rich natural gas. The Company has achieved top decile results through the development of our high quality Montney property, uniquely positioned in the Deep Basin of Bigstone, in northwest Alberta. Distinction continues to outperform key industry players by improving operational efficiencies and growing our dominant Bigstone land position in this world-class play. Distinction is headquartered in Calgary, Alberta.