Chinese investors to buy Long Run Exploration in $770M deal

CALGARY -- A group of Chinese investors has agreed to buy Calgary-based Long Run Exploration Ltd. in a deal worth about $770 million.

See Full Article

Long Run said Monday that Chinese investors would pay roughly $100 million in cash for the company plus assume all its outstanding debt.

The intermediate oil and gas producer has been struggling to service its debt and reported a net earnings loss of $305 million in the third quarter as low oil prices hit its bottom line.

The company said prices had worsened since it had reached a financing deal in November and so had cancelled the deal in favour of an outright sale of the company.

Long Run didn't name the Chinese investors, saying only that they have extensive experience in global oil and gas operations and have recently made controlling investments in Canada's oil and gas sector.

The buyers are paying 52 cents for each Long Run share, a 215 per cent premium to its closing price on Friday, and 75 cents on the dollar for Long Run's unsecured convertible subordinated debt.

Long Run produced the equivalent of about 31,000 of barrels of oil a day in the third quarter from assets in the Peace River Montney, the Deep Basin, and the Redwater Viking.



Advertisements

Latest Economic News

  • Loblaw fourth-quarter profit up 57% to $201M

    Economic CBC News
    ?Loblaw had $11.13 billion of revenue and a $201 million net profit in the fourth quarter, according to earnings announced Thursday morning. The profit amounted to 50 cents per share. The net profit was up 57 per cent or $73 million from a year earlier, while revenue was up $265 million or 2.4 per cent. Source
  • Loblaw Q4 profit up 57 per cent to $201M

    Economic CTV News
    BRAMPTON, Ont. -- Loblaw had $11.13 billion of revenue and a $201 million net profit in the fourth quarter. The profit amounted to 50 cents per share. The net profit was up 57 per cent or $73 million from a year earlier, while revenue was up $265 million or 2.4 per cent. Source
  • CIBC grows first-quarter net income to $1.41B

    Economic CBC News
    ?CIBC increased its first-quarter net income to $1.41 billion, up from $982 million a year ago, according to earnings announced Thursday morning. The quarterly earnings amounted to $3.50 per diluted share, compared with $2.43 per diluted share during the same period last year. Source
  • Canadians put less into TFSAs in 2016: survey

    Economic CTV News
    TORONTO - A new survey suggests Canadians contributed less to their tax-free savings accounts last year, mostly because they didn't have enough money to invest. The Bank of Montreal's annual TFSA survey found respondents contributed an average of $4,592 into their accounts last year - $939 less than the year before. Source
  • CIBC grows first quarter net income

    Economic CTV News
    TORONTO - CIBC increased its first-quarter net income to $1.41 billion, up from $982 million a year ago. The quarterly earnings amounted to $3.50 per diluted share, compared with $2.43 per diluted share during the same period last year. Source
  • North Dakota officials beg last pipeline protesters to leave

    Economic CTV News
    CANNON BALL, N.D. - Public officials in North Dakota pleaded with the remaining protesters at the Dakota Access oil pipeline camp to pack up and leave so authorities can resume cleaning up the premises without any further arrests. Source
  • Asian stocks dip as U.S. rate hike mooted

    Economic CTV News
    HONG KONG - Asian shares slipped Thursday after the latest Fed minutes raised the possibility that a U.S. rate hike could come sooner than expected. KEEPING SCORE: Japan's benchmark Nikkei 225 lost 0.4 per cent to 19,312.07 and South Korea's Kospi dipped 0.1 per cent to 2,104.70. Source
  • Global stocks steady as Fed minutes fail to sway investors

    Economic CTV News
    LONDON -- Global stock markets were trading in narrow ranges Thursday after the minutes to the last policymaking meeting of the Federal Reserve failed to provide much of a steer as to the timing of the U.S. Source
  • Tesla swings to lost in 4Q, says Model 3 on target

    Economic CTV News
    DETROIT -- Unable to string together profitable quarters, electric car and solar cell maker Tesla Inc. reported a loss for the last three months of 2016. Tesla posted its first profit in three years in last year's third quarter and had predicted net income in the fourth quarter. Source
  • Tesla swings to loss in 4Q, says Model 3 on target

    Economic CTV News
    DETROIT -- Unable to string together profitable quarters, electric car and solar cell maker Tesla Inc. reported a loss for the last three months of 2016. Tesla posted its first profit in three years in last year's third quarter and had predicted net income in the fourth quarter. Source