October 15, 2013 / 9:29 PM / in 4 years

Bellatrix to buy rival oil producer, forms Korean joint venture

CALGARY, Alberta, Oct 15 (Reuters) - Bellatrix Exploration Ltd, a small Canadian oil and gas explorer, said on Tuesday it has agreed to buy rival Angle Energy Inc for cash and shares worth C$315 million (US$304 million) and formed a joint venture with a South Korean private equity firm to develop oil properties in Alberta.

The company said it would pay C$3.85 per share for Angle, a 20 percent premium to its closing price on the Toronto Stock Exchange on Friday.

Bellatrix will cap its cash payout for the acquisition at C$69.7 million with the remainder of the purchase to be funded by its shares.

It will also assume Angle’s C$261 million long-term debt.

The acquisition brings 10,500 barrels of oil equivalent (BOE) per day of oil and gas production, as well as 32.7 million BOE of reserves and nearly 230,000 acres of exploration lands primarily in West Central Alberta, where Bellatrix’s operations are concentrated.

Bellatrix also said it has formed a C$240 million joint venture with South Korea’s Troika Resources Private Equity Fund, managed by KDB Bank, SK Energy and Samchully Asset Management Co, to drill and develop oil and gas properties in the Ferrier-Cardium region of west central Alberta.

The Korean fund will contribute C$120 million to the joint venture, which is expected to drill 63 wells in the region by the end of 2014.

The fund’s investment comes as Canadian Energy Minister Joe Oliver visits South Korea and China to boost Asian investment in Canada’s oil and gas industry.

Bellatrix shares fell 10 Canadian cents to C$8.35 on the Toronto Stock Exchange on Tuesday.

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