June 20, 2016 / 8:02 PM / a year ago

BRIEF-Tamarack Valley Energy buys assets for $85 mln, raises 2016 guidance

2 Min Read

June 20 (Reuters) - Tamarack Valley Energy Ltd :

* Tamarack valley Energy Ltd. announces strategic acquisitions, $72 million bought deal financing and increased 2016 guidance

* Total aggregate cash consideration for which will be $85 million

* Entered into binding agreements to undertake two strategic asset acquisitions

* Acquisitions will be partially funded with a $72 million bought deal equity financing

* Acquisitions are expected to add about 1,900 boe/in aggregate, and include 95 total sections of land at redwater and wilson creek

* First acquisition is consolidation of assets located in tamarack's core operating areas of redwater,wilson creek in alberta

* Average estimated 2016 annual production guidance increased to between 9,700-10,000 boe/d (approximately 53-57% oil & NGLs)

* Second acquisition is comprised of a light oil pool at Penny in Southern Alberta

* 2016 capital expenditure budget increased to between $45-$53 million

* Accretion to 2016 estimates is forecast to be 5% on cash flow per share from deals and financing

* Says expects deals to be accretive to 2016 estimates by about 5% on cash flow per share

* Accretion of 14% to current annualized cash flow per share, assuming 12-month forward strip prices at june 17 from deals and financing

* Acquisitions, ongoing cost-reduction initiatives to result in reduction of operating costs of about $0.40-0.60/boe by end of 2016 Source text for Eikon: Further company coverage:

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