The board of directors of Calgary-based Boundary Creek Resources Ltd. has given the nod to an acquisition agreement offer by Bow Valley Energy, a small Calgary-based oil and natural gas company with international operations.
The offer will be mailed to Boundary Creek shareholders before July 26, 2002, with the offer open for 35 days.
The value of the offer for Boundary Creek, based on a $2.40-per-share purchase price, is about $22.5 million plus the net debt of Boundary Creek of approximately $3 million as of June 30, 2002.
“Boundary Creek provides Bow Valley with a strategic growth platform upon which Bow Valley can build its natural gas-focused Western Canadian business plan,” said Bow Valley president and CEO Robert Moffat.
“The transaction provides two growth regions in west-central Alberta and the Peace River Arch, areas which the Bow Valley management is very familiar with, and in which an exploration program has already begun.”
Subject to conditions, Bow Valley has offered to purchase all of the issued and outstanding common shares of Boundary Creek and any common shares issued upon the exercise of outstanding options and warrants.
Boundary Creek shareholders can realize $2.40 cash per Boundary Creek share, or 1.5 Bow Valley common shares per Boundary share, or a combination of the two, subject to a maximum of $9.8 million cash.
