Canadian junior Alberta Oil Sands (AOS) and Calgary-based Marquee Energy have agreed to a merger plan in which AOS will acquire a majority stake in the company.
AOS will acquire all of the issued and outstanding common shares of Marquee and the amalgamated company will become New Marquee
The boards of directors of Marquee and Alberta Oilsands have approved the deal saying that the business combination of Marquee and Alberta Oilsands will provide significant benefits to both companies’ shareholders.
New Marquee will be able to accelerate the development of its highly economic and well defined light oil fairway at Michichi, consisting of 370 million barrels of discovered petroleum initially in place, and over 300 identified drilling locations targeting the Detrital/Banff reservoir.
Alberta Oilsands expects that the Ministry of Mines and Energy of Namibia will approve the full relinquishment of Blocks 2712A and 2812A and with such relinquishment, Alberta Oilsands will no longer have any assets or obligations in Africa.
Richard Thompson, Marquee's President and CEO, commented: "We are excited about this transaction and believe it will provide the ability to focus New Marquee's efforts on operational execution and a focused development plan, becoming a top-tier oil-weighted company with a clear path towards repeatable and sustainable growth."
Upon the deals completion, it is expected that New Marquee will have the liquidity to act upon organic and strategic opportunities within its core area which have resulted from the current low commodity price environment.