Davis client, Southern Pacific Resource Corp., Closes CDN $89 Million Acquisition and Financing
On November 3, 2009, Southern Pacific Resource Corp. acquired all of the securities of Senlac Oil Ltd. from a major oil and gas company, for closing cash consideration of approximately $89,000,000. Senlac Oil Ltd.'s operations include a thermal heavy oil production project and associated lands and facilities in Saskatchewan that are currently producing approximately 5,100 barrels of oil per day.
In connection with the transaction, on October 23, 2009 Southern Pacific issued 104,000,000 subscription receipts, each representing the right to receive one common share, for gross proceeds of $52,000,000. The proceeds of the offering were applied to satisfy part of the purchase price payable for the acquisition of Senlac Oil Ltd.
Concurrent with the closing of the transaction, Southern Pacific entered into a credit facility provided by BMO Bank of Montreal and to finance a portion of the purchase price payable in the transaction.
Davis LLP represented Southern Pacific for the acquisition of Senlac Oil Ltd., the private placement and the debt offering. Davis' team was led by Trevor Wong-Chor and included Derrick K. Auch, Michael Der and Jonathan Brown, Douglas G. Shields, Dr. Euan Taylor, Jonathan Gilhen and J. Kevin Wright, Robert Perrin and Brian Yaworski, Q.C.