Direct Energy Marketing Limited announced Wednesday that it has completed its acquisition of Alberta producer Rockyview Energy Inc., with 22.3 million common shares of Rockyview — representing approximately 91.7% of the issued and outstanding common shares of the company — having been validly deposited pursuant to its offer.

In the deal that was first announced last November (see Daily GPI, Nov. 16, 2007), Direct Energy paid C$3.16/share — a 29% premium over the 20-day weighted average closing price — for what amounted to a C$113.3 million transaction.

“Rockyview Energy is an excellent strategic and operational fit for Direct Energy and we are pleased that the way has been cleared for us to complete the acquisition,” said Direct Energy CEO Deryk King. “The acquisition landscape for natural gas-weighted producers remains attractive for Direct Energy. We continue to evaluate opportunities to add reserves and production to our upstream business where value can clearly be added from such acquisitions.”

Rockyview Energy has conventional oil and gas and coalbed methane operations in central and western Alberta and the Peace River Arch in northwestern Alberta. In addition to a production base of 2,700 boe/d — 97% of it natural gas — Rockyview has a 100,000-acre undeveloped land portfolio with numerous identified drilling locations.

Direct Energy owns and operates approximately 3,000 natural gas wells in Alberta and three gas-fired power plants in Texas, and has renewable power purchase agreements totaling 813 MW in Texas.

Since Direct Energy has acquired more than 90% of the outstanding Rockyview common shares, Direct Energy intends to acquire all the remaining Rockyview common shares not deposited under the offer by means of a compulsory acquisition under the Business Corporations Act (Alberta). Once it has acquired all of the outstanding Rockyview common shares, Direct Energy said it will apply to have the shares delisted from the Toronto Stock Exchange and will apply for Rockyview to cease being a reporting issuer in any jurisdiction in Canada.

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