Spartan Oil accepts Bonterra offer, calls off Pinecrest merger

Wed Dec 12, 2012 7:29am EST
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Dec 12 (Reuters) - Spartan Oil Corp said it has agreed to be acquired by Bonterra Energy Corp and terminated its earlier merger agreement with Pinecrest Energy Inc.

Spartan's board termed Bonterra's offer a "superior proposal," and the company paid Pinecrest a non-completion fee of C$12.5 million.

Calgary-based Bonterra on Tuesday offered to buy Spartan for about C$441 million ($446.92 million), and said the combined company would have one of the premier light-oil assets around the Pembina region in the western Canadian province of Alberta.

Pinecrest agreed last month to acquire Spartan in a bid to raise its output from reserves in Alberta and Saskatchewan.