Weekly Energy Newsletter
News Items Ending December 23, 2024
Mergers and Acquisitions:
STEP Energy Services Ltd. (TSX:STEP) announced the termination of its going-private arrangement agreement with ARC Financial Corp., effective December 19, 2024. The agreement was mutually ended without liability or cost after it became clear that requisite minority shareholder approval could not be secured.
E&P: Vermilion Energy Inc. (TSX:VET) announced an agreement to acquire Westbrick Energy Ltd., a Calgary-based Deep Basin-focused private oil and gas company, for $1.075B. The acquisition adds 50,000 boe/d of production and 1.1MM acres of land with over 700 drilling locations identified.
E&P: Trio Petroleum Corp (NYSE:TPET) announced it has signed a non-binding Letter of Intent to acquire a 100 per cent working interest in petroleum and natural gas properties from Novacor Exploration Ltd. in Saskatchewan's Lloydminster heavy oil region for $2MM. The assets acquired include seven producing wells.
Financing:
Source Energy Services Ltd. (TSX:SHLE) has refinanced its credit facilities, securing a five-year US$135MM term loan and a $40MM revolving asset-backed loan. Proceeds will redeem the 10.5 per cent Senior Secured Notes due March 2025 and repay the existing asset-backed loan.
Montreal-based Deep Sky has received a $40MM USD grant from Bill Gates’ Breakthrough Energy Catalyst to develop its Deep Sky Alpha project in Innisfail, Alberta. The facility, positioned as the world’s first direct air capture carbon removal test hub and commercialization center, marks Breakthrough Energy Catalyst's first Canadian investment.
Other
SECURE Energy Services Inc. (TSX:SES) announced it will change its name to SECURE Waste Infrastructure Corp. effective January 1, 2025.
Canada finalized Clean Electricity Regulations aiming for a net-zero grid by 2050, extending the original 2035 target after concerns over reliability and costs.
Canada's annual inflation rate remained steady at 1.9 per cent in November, just below the Bank of Canada's 2 per cent target, with economists expecting potential volatility in the coming months.