Parallax Closes Deal with Vesta Energy
Deal News | Dec 04, 2024 | Globenewswire
Parallax Energy, through its subsidiary Parallax Energy Operating Inc., has successfully acquired Vesta Energy Ltd., expanding its production base in the East Shale Basin of the Duvernay light oil window in Alberta. This acquisition enhances Parallax's capabilities with over 17,000 boe/d production and a significant development inventory across 230,000 net acres. The company aims for long-term growth, emphasizing strategic consolidation opportunities. The acquisition was financially supported by Carnelian Energy Capital and a new reserves-based credit facility managed with the assistance of several financial advisors and legal counsels.
Sectors
- Energy & Natural Resources
- Financial Services
- Legal Services
Geography
- Canada – The transaction and operations are centered around the Canadian region, specifically in Alberta.
Industry
- Energy & Natural Resources – The article discusses Parallax Energy's acquisition of Vesta Energy, involving oil production in the Duvernay light oil window.
- Financial Services – The acquisition was supported with financial assistance from banks and capital management firms, highlighting its relevance to the financial industry.
- Legal Services – Multiple legal firms were involved in advising on the acquisition and credit financing aspects.
Financials
- Not Disclosed – No specific financial details or transaction value is mentioned in the article.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Parallax Energy Operating Inc. | Acquirer | Company | A wholly owned subsidiary of Parallax Energy, L.P., responsible for the acquisition of Vesta Energy Ltd. |
| Vesta Energy Ltd. | Target company | Company | A private producer with a significant land position in the East Shale Basin. |
| Carnelian Energy Capital Management, L.P. | Equity provider | Company | Provides equity commitment to fund the acquisition. |
| National Bank Financial Inc. | Financial Advisor | Company | Acted as a financial advisor for the acquisition and agent/co-lead arranger for the credit facility. |
| ATB Capital Markets | Financial Advisor | Company | Advised Parallax for the acquisition. |
| Bank of Montreal | Co-Lead Arranger, Joint Bookrunner | Company | Co-lead arranger and joint bookrunner for the credit facility. |
| Royal Bank of Canada | Co-Lead Arranger, Joint Bookrunner | Company | Co-lead arranger and joint bookrunner for the credit facility. |
| ATB Financial | Co-Lead Arranger | Company | Co-lead arranger for the credit facility. |
| Stikeman Elliott LLP | Legal Advisor | Company | Provided legal counsel for the acquisition. |
| Vinson & Elkins LLP | Legal Advisor | Company | Provided legal counsel for the acquisition. |
| Gowling WLG (Canada) LLP | Legal Advisor | Company | Provided legal counsel for credit financing. |