August 24, 2009 / 5:03 AM / 9 years ago

UPDATE 1-Daylight Resources to buy Highpine for C$530 mln

* Deal “highly accretive” to per unit cash flow

* Boards of both companies approve deal

* Sees 38,000 boe/d average production from closing to end-09 (Recasts, adds details)

Aug 24 (Reuters) - Canadian oil and natural gas trust Daylight Resources Trust DAY_u.TO said late on Sunday it agreed to buy Highpine Oil & Gas Ltd HPX.TO for C$530 million ($492 million) in a deal which includes the assumption of Highpine’s net debt and transaction costs.

Highpine shareholders will receive 0.85 of a Daylight trust unit, or C$7.00 in cash per share held, a premium of 38 percent to the 20-day weighted average of Highpine’s share price.

Daylight said the combined company, which will focus on growth in Elmworth and West Central Alberta, is expected to be able to produce an average of about 38,000 barrels of oil equivalent per day (boe/d) from the closing of the deal till the year-end.

The deal will also increase Daylight’s working interest undeveloped land holdings to about 600,000 acres, the company said in a statement.

The deal, which Daylight said is “highly accretive” to per unit cash flow and production, was approved by the boards of both companies.

Units of Daylight Resources Trust, which was formed through merger between Daylight Energy Trust and Sequoia Oil & Gas Trust in Sept 2006, closed at C$8.13 on the Toronto Stock Exchange, while Highpine’s shares ended at C$5.65. ($1=1.078 Canadian dollar) (Reporting by Ajay Kamalakaran in Bangalore; Editing by Anshuman Daga)

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