Jun 07 - Murphy Oil Corporation Announces Acquisition of Bear Ridge Resources Ltd. Assets

Source Company Web Site
Company Murphy Oil Corporation 
Tags Deals, Strategy - Corporate
Date June 11, 2007

Bear Ridge is pleased to announce that it has entered into a definitive agreement to sell its assets in the Tupper region of North East British Columbia (the "Tupper Assets") for cash consideration of C$155 million. The sale is expected to close later today. Proceeds from the sale will be used to repay all of Bear Ridge's outstanding debt, to redeem 10,030,000 outstanding flow-through warrants for aggregate consideration of approximately C$7.5 million and to pay transaction costs, with the balance (being approximately equal to the amount of cash consideration available to Bear Ridge shareholders under the Arrangement) available for general corporate purposes. The transaction is subject to customary post-closing adjustments.

The Tupper Assets are composed of 34 sections of net undeveloped land on which Bear Ridge has drilled five net wells to date, four of which are completed and tested in the Montney zone with the fifth awaiting completion and testing. None of the Tupper Assets are currently producing. Bear Ridge has cumulatively spent approximately C$33.5 million on the Tupper Assets. This sale allows Bear Ridge to monetize the Tupper Assets at an attractive valuation for Bear Ridge shareholders. 

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