M&A

10 November, 2009

UPDATE 1-Midway Energy to buy Alberta oil assets for C$10.6 mln

* To raise C$12 mln via equity financing

* To sell 6.3 mln shares at C$1.90 apiece

* To buy oil assets, truck terminal in Garrington area

Nov 10 (Reuters) - Canadian oil explorer Midway Energy Ltd (MEL.TO) said it agreed to acquire certain Cardium oil assets in Alberta for about C$10.6 million in cash and stock.

The company plans to sell about 6.3 million shares at C$1.90 apiece to a group of underwriters and raise about C$12 million. It will raise the money to fund the cash component of the deal.

The company said the assets in the Garrington area of Alberta, would add about 150 barrels of oil equivalent per day (boe/d) of light oil and natural gas production to its fold.

For the assets, Midway will issue about C$500,000 of its shares and also pay about C$10.1 million in cash.

The company also agreed to buy an oil battery and truck terminal in Garrington, with a capacity of about 1,000 boe/d, for about C$2.5 million in cash and stock.

Shares of the Calgary, Alberta-based company were up 2 Canadian cents at C$2.05 Tuesday morning on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Ratul Ray Chaudhuri)

Source: http://www.reuters.com