On Oct. 6, 2020, Canadian Natural Resources Limited (CNRL) acquired Painted Pony Energy Ltd. (Painted Pony) for $461-million. The deal included Painted Pony’s assets of Blair, Daiber, Kobes and Townsend in northeast B.C., which together produce about 270-million cubic feet per day of natural gas and 4,600 barrels per day of natural gas liquids. The transaction was completed by way of a plan of arrangement under the Canada Business Corporations Act.
CNRL will also assume Painted Pony’s debt of $350-million. According to the terms, CNRL will acquire Painted Pony’s outstanding shares for 69 cents per share in cash. The transaction will allow CNRL to grow its position in the liquids-rich Montney natural gas region of northeastern B.C.
Canadian Natural is one of the largest natural gas producers in Canada.
Blake, Cassels and Graydon LLP represented Painted Pony with a team led by
Scott Clarke (securities/M&A),
Christine Milliken (oil and gas),
and which included
Daniel McLeod (securities/M&A);
Sean Maxwell (pensions);
Bharbara Parken (tax);
Corinne Xu (competition).
Bennett Jones LLP represented CNRL with a team including
Eric Chernin (corporate);
Beth Riley (competition);
Karen Dawson (banking);
Michael Theroux (litigation);
Darcy Moch (tax).