On December 18, 2025, Cygnet Energy Ltd., a private exploration and production company, completed its acquisition of Kiwetinohk Energy Corp. Cygnet acquired all of the issued and outstanding common shares of Kiwetinohk for $24.75 per share in cash, by way of a plan of arrangement under Section 192 of the Canada Business Corporations Act. The transaction carried a total value of approximately $1.4 billion, inclusive of equity and assumed net debt.
As part of the arrangement, certain investment funds advised by ARC Financial Corp., an existing investor of Cygnet and shareholder of Kiwetinohk, sold a portion of their Kiwetinohk shares in exchange for Cygnet common shares on equivalent economic terms, pursuant to a rollover agreement entered into in connection with the arrangement. The acquisition was approved by Kiwetinohk shareholders at a special meeting held in December 2025 and by the Court of King's Bench of Alberta, with support agreements previously secured from shareholders holding approximately 79 percent of the outstanding Kiwetinohk shares. The Kiwetinohk shares were delisted from the Toronto Stock Exchange at the close of business on December 19, 2025.
The acquisition brings together two complementary asset bases, creating a scaled producer focused on the Montney and Duvernay formations with combined production of more than 44,000 boe per day, primarily from the Simonette and Placid areas. The combined company gains enhanced operational synergies, greater infrastructure control, and differentiated market access, including approximately 120 MMcf/d of Alliance pipeline capacity and a deep drilling inventory. Cygnet is backed by investors including ARC Financial Corp. and Carlyle.
Stikeman Elliott LLP acted as legal counsel to Kiwetinohk Energy Corp., with a team that included Benjamin Hudy, Rhonda Parhar, Samer Chomery, Braxton Houlden, and Ashley Murray (Corporate/M&A); Chrysten Perry and Megan Ollivier (Energy); Julie D'Avignon and Gordon Masson (Tax); and Kris Noonan (Employment). Burnet, Duckworth & Palmer LLP acted as legal counsel to Cygnet Energy Ltd.