Davis LLP acted for Canacol Energy Ltd. (“Canacol”) as it completed the acquisition of approximately 96% of the issued and outstanding shares (“Carrao Shares”) of Carrao Energy Ltd. (“Carrao”) payable in common shares of Canacol (“Common Shares”) in a transaction valued at approximately $70MM. Carrao shareholders received 0.86 of a Common Share for each Carrao Share held. Canacol will acquire the remaining Carrao Shares pursuant to the compulsory acquisition provisions of the Business Corporations Act (British Columbia). Canacol issued an aggregate of 98,110,213 Common Shares to former holders of Carrao Shares and will issue the remaining 4,902,000 Common Shares at a future date in accordance with the compulsory acquisition provisions.
Canacol is a Canadian-based international oil and gas corporation with operations in Colombia, Brazil and Guyana. Carrao has working interests in eight exploration and production blocks in Colombia governed by contracts under the Agencia Nacional de Hidrocarburos.
The Davis team was led by Trevor Wong-Chor and Roger Macleod and included Michael Coburn, Meghan Rollins, Jennifer Baugh, Ruby Chan, Elaine Tham and Matthew Pollock (student-at-law).