On August 25, 2023, Griffon Partners Operation Corp. (“GPOC”) and its related entities filed Notices of Intention to Make a Proposal (the “NOI Proceedings”) under the Bankruptcy and Insolvency Act (Canada), as amended (the “BIA”). Alvarez & Marsal Canada Inc. was appointed as proposal trustee (the “Proposal Trustee“).
On October 18, 2023, the Alberta Court of King’s Bench (the “Court”) approved a sales and investment solicitation process (the “SISP”). Pursuant to Court approval, Alvarez & Marsal Canada Securities ULC (the “Transaction Agent”) has been engaged to solicit interest in, opportunities for, a sale of, investment in, or refinancing of, all or part of GPOC’s business and operations.
GPOC is a private E&P company with assets in the Viking light oil resource play in Alberta and Saskatchewan. Current production of ~1,500 boe/d (~40% liquids) is projected to generate $12 million of net operating income in 2023E. A modest development program can (i) grow run rate NOI to >$24 million while improving netbacks, and (ii) maintain production at >1,700 boe/d through 2028 to generate >$75 million in cumulative asset level free cash flow.
Interested parties wishing to pursue a transaction are to submit a non-binding letter of interest to the Transaction Agent in accordance with the SISP, by the following deadline:
- Submission Time for Non-binding LOIs: 4:00 p.m. (Mountain Time) on December 12, 2023.
Copies of the SISP Procedure Document and other Court filed materials are available at: https://www.alvarezandmarsal.com/GriffonPartners-SISP.
Interested parties who wish to obtain additional information and participate in the SISP may contact Quinn Mosby at: qmosby@alvarezandmarsal.com.