The General Meeting of TriOil Resources Ltd of Canada has accepted PKN ORLEN's purchase offer for TriOil shares, in acquisition of the company. As a consequence, ORLEN Upstream International B.V., a subsidiary of ORLEN Upstream registered in the Netherlands, will acquire all outstanding TriOil shares.
The shareholders' approval of the acquisition follows an arrangement in mid-October between TriOil and PKN ORLEN, which through its subsidiary ORLEN Upstream initiated the procedure to purchase 100% of the shares of the Canadian company. The resolution adopted by the General Meeting will be filed with the Court of Queen’s Bench of Alberta, which will formally confirm the legality of the transaction. The whole process will finally be closed on the date of transfer of the cash consideration, which is expected to occur in the next few days.
For 2013-2017, PKN ORLEN has allocated PLN 2.4 billion to development of its upstream segment. Under an accelerated scenario, expenditure in the period may even reach up to PLN 5.1 billion.
"The diversification of exploration and production assets is a part of our strategic objectives, and presents a great opportunity for the transfer of know-how. Acquisition of TriOil's assets, will allow us to bridge the gap between the mature unconventional hydrocarbon production markets and the resources in Europe, where few appraisals have been made so far. This transaction is also an important milestone in our journey to further development of PKN ORLEN on the global upstream market." - commented Jacek Krawiec, President & CEO of PKN ORLEN
TriOil operates an asset portfolio in areas with long production histories, mainly in the province of Alberta, Western Canada. A major part of TriOil's operations is conducted in licence areas spanning approximately 3,500 square kilometres, including 1,100 square kilometres of geological formations with confirmed hydrocarbon accumulations. TriOil has three developments: the Cardium development at Lochend, the Dunvegan development at Kaybob, and the Montney development at Pouce Coupe. Their total production potential is approximately 20m boe (2P, proven and probable reserves). The company also has excellent knowledge of local geological conditions, and a strong technical expertise. Since 2010, it has been drilling horizontal wells using multi-stage fracturing technologies, and has completed 85 of such treatments to date.
"Acquisition of TriOil in the first year of PKN ORLEN’s revised strategy would be a huge success. Efficient closing of the transaction would enable us to integrate the newly acquired company and take steps to define joint operational targets for the years to come." - said Wiesław Prugar, President of the Management Board of ORLEN Upstream
The past few years have been a period of intense growth for TriOil – in 2012, its hydrocarbon production increased by 65% year on year. In Q1-Q2 2013, its average daily production doubled over the same period in 2012, reaching approximately 4,000 boe.
TriOil's daily production came in at an estimated 4,100 boe in October 2013, and is now in excess of 4,500 boe. This puts the Canadian company on track to meet or exceed its production forecasts for 2013, which are estimated at 4,400 boe/day.
Press Office