On June 24, 2016, Teine Energy Ltd. (Teine), a private Calgary-based exploration, development and production company focused on acquiring and developing oil and natural gas properties in the Western Canadian Sedimentary Basin, completed its $975 million asset acquisition of Viking light oil and heavy oil properties located in South Western Saskatchewan from Penn West Petroleum Ltd. (Penn West). Penn West is a publicly traded, Calgary-based conventional oil and gas company which holds dominant oil positions in the Cardium, Viking and Peace River areas of Alberta.
The acquisition includes a core position within the Saskatchewan Viking light oil play, as well as low decline conventional Bakken heavy oil properties currently under water flood, which will result in additional 16,300 BOE/day of production to Teine and 410,000 net acres of undeveloped land. Teine is now the largest landholder and producer within the Saskatchewan Viking fairway, controlling over 1,000 net sections (640,000 acres) of undeveloped land containing over 5,000 risked Viking horizontal locations. The acquisition was funded by the Canada Pension Plan Investment Board and Teine’s existing credit facilities.
Teine was represented by Stikeman Elliott LLP with a team that included Chrysten Perry, Brad Ashkin and Cheryl Rea (M&A), Marc Barbeau and Guy Martel (banking), Susan Hutton and Megan MacDonald (competition), and Gary Clarke, Chip Johnston and Kenton Rein (employment).