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Gas industry

Murwell Resources Ltd. Announces Merger with Icon Energy Limited

Strategic Insights

— 1 min read

Murwell Resources Ltd., a leading oil and gas company, has announced a merger with Icon Energy Limited. The combined company will have a proven financial and operating management team, no debt, and an excellent balance of oil and gas development and exploration projects. The merger is expected to significantly increase production and cash flow over the next 12 months, utilizing available working capital to construct facilities.

Key Takeaways:

  • The Directors' Circular recommending the acceptance of the offer was mailed to all shareholders, with the Board of Directors unanimously recommending that shareholders accept the offer.
  • The combined company will have a proven financial and operating management team, no debt, and an excellent balance of oil and gas development and exploration projects.
  • The combined company's available working capital will be utilized to construct facilities, significantly increasing production and cash flow over the next 12 months.
  • The combined company has proven and probable reserves of 1.5 million barrels of oil and 5 BCF of natural gas with additional development potential.
  • The principal properties of the new company are located in the Carrot Creek, Lathom, Nisku, and Kitscoty areas of Alberta, with smaller interests held in the Antler and Little Pine areas of Saskatchewan.
  • The Corporation operates and has very high working interests in the majority of its core properties.
  • Sayer Securities Limited is acting as financial adviser in concluding the business combination of Icon and Murwell.
  • The basis of the offer is two Icon Common Shares for each Murwell Common Share.
  • The offer is for all Common Shares of Murwell Resources presently outstanding and for all Common Shares of Murwell to be issued upon the exercise of the presently outstanding options and common share purchase warrants.
  • Following the transaction, Icon will have a total of approximately 22 million common shares outstanding.

Statistics:

  • 1.5 million barrels of oil reserves available to the combined company
  • 5 BCF of natural gas reserves available to the combined company
  • 22 million common shares outstanding following the transaction
  • The combined company has no debt
  • The construction of facilities is expected to increase production and cash flow over the next 12 months
  • The principal properties are located in the Carrot Creek, Lathom, Nisku, and Kitscoty areas of Alberta

Sources:

  • Murwell Resources Ltd. press release dated December 12, 1995
  • Business Wire, "MURWELL RESOURCES LTD. - PROPOSED BUSINESS COMBINATION - 12/12/95"
  • Alberta Stock Exchange

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