Bonavista Energy Trust said it is buying about 39.6 million boe of natural gas and oil reserves in northeast British Columbia from an unnamed group of sellers for $414 million. The properties, which are mainly natural gas, are expected to increase Bonavista’s production by 25%. They include current production of 10,600 boe/d, including 44 MMcf/d of natural gas, 2,830 bbl/d of associated natural gas liquids and 440 bbl/d of light oil. After the deal, Bonavista will produce about 53,000 boe/d, 58% of which will be natural gas. “The assets, which will establish a new core region for Bonavista in northeastern British Columbia, are highly concentrated, natural gas-weighted and are geographically located within a 100-kilometer radius northwest of Fort St. John, BC,” Bonavista said. The deal will be funded through a combination of bank debt, an issuance of trust units and an issuance of convertible debentures. Bonavista has entered into an agreement to sell 10.9 million subscription receipts at a price of $25.85 each for $281.7 million, and $135 million of convertible extendible unsecured subordinated debentures to a syndicate of underwriters.
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