Donnycreek Energy has entered into an arm’s length agreement with Contact Exploration to merge and create a new corporation.
The two companies will become Kicking Horse Energy and the merger will consolidate the interests of Donnycreek in Alberta, Canada.
Donnycreek holds a 50% working interest in the property, while Contact holds a 25% interest.
The deal will see the company have a total of 3,000 BOE/d (Barrels of Oil Equivalent per day) in production from the Kakwa property.
It also includes Donnycreek’s operated working interest in 380 gross sections of petroleum and natural gas rights at Wapiti and West Kawka.
The combined company will have a significant interest additional acreage in the Kakwa/Resthaven and Wapiti areas of Alberta’s deep basin.
Kicking Horse will be managed by Steve Harding as president, Raymond Sully as chief operating officer, Chad Kalmakoff as chief financial officer, Mark Hadley as vice president of exploration and Paul Poohkay as production manager.
Steve Harding, president of Kicking Horse, said: “We are very excited to have expended our interest in an asset that continues to demonstrate increased values and future opportunity.
“East Kawka becomes the cornerstone that not only secures the company’s growth, but also leverages our expansion into other deep basin properties.
“The Contact management team has operated the East Kakwa property since 2011 and has an exceptional track record in terms of not only execution but also financial and operational discipline.”
Kicking Horse’s board of directors will initially consist of seven members, including Ken Bowie, Bob Hodgins, Bruce Allford, Steve Harding and three directors to be determined by Donnycreek and agreed to by Contact.
The merger is anticipated to close mid-December once it has been approved by majority shareholders.
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