January 2020

Royal Golden Eagle’s PO&G to Feed Growing Natural Gas Demands Through Canbriam

Canbriam Energy Inc. is a company focused on developing ‘liquids-rich natural gas’. Their headquarters is situated in Calgary, Alberta. Despite this, the company runs most of their important operations in Altares and Kobes Montney regions of northeast British Columbia. Their main focus is the assets they own in Montney.

Another important point of focus for Canbriam is improving the environment through the use of technology, thereafter “increasing their “investments in vapor recovery, waste heat recovery, solar power for electricity, and utilizing recycled water”.

Recently, Pacific Oil and Gas (PO&G) acquired Canbriam Energy Inc. with the intention of producing the cleanest form of natural gas. PO&G is an independent energy resources development company, managed by the Royal Golden Eagle (RGE) Group holds multiple investments throughout the energy supply chain, including upstream oil and gas developments, LNG receiving terminals, power plants, and gas transmission networks. PO&G holds offices in several countries for all their energy-based opportunities.
On 13th May 2019, it was announced that PO&G will be acquiring Canbriam Energy Inc. This acquisition was meant to develop Canbriam Energy Inc.’s resources in Montney, production plants that produce a total of approximately 200 million cubic feet of natural gas, and 6,000 barrels of associated natural gas liquids per day.

PO&G means to use Canbriam Energy Inc.’s natural gas processing plants and water handling infrastructure to increase their natural gas export opportunities.

Canbriam’s President and Chief Executive Officer, Paul Myers stated, “This transaction supports the ongoing development of our prolific Montney assets and aligns us for future natural gas exports. We warmly welcome Pacific Oil and Gas as our new owner.”

President of PO&G, Ratnesh Bedi said: “Canada has the opportunity to become a leader in the global energy transition. Canbriam is one of the lowest-cost producers in Montney, and we look forward to partnering with Paul Myers and the entire team. We welcome the opportunity to work in Canada and produce some of the cleanest natural gas, held to the highest environmental and technical standards in the world, and sharing that resource to offset GHG emissions around the globe.”

Thereafter, it was declared that the transaction will be closed before 1st July 2019. Keeping to the deadline for the closure of the acquisition, it was successfully completed on 18th June 2019. On the same day, Canbriam Energy Inc. issued a conditional redemption notice to the holders of their senior notes to redeem the notes, conditional on the completion of the acquisition.

PO&G was represented by the following: Macquarie Capital Markets Canada Ltd. as an exclusive financial advisor and Bennett Jones LLP as legal counsel. Canbriam Energy Inc. was represented by RBC Capital Markets as the financial advisor and Norton Rose Fulbright Canada LLP as legal counsel.

Royal Golden Eagle’s PO&G will move forward with their newly acquired Canbriam Energy Inc. to create new opportunities for Canada.