BlackPearl Resources, which operates a heavy oil property in Onion Lake is being acquired by International Petroleum Corp. Both companies made the announcement Wednesday stating that they have entered into an agreement where IPC will acquire all of Black Pearl’s shares.
The shares are based upon a share exchange ratio of 0.22 shares of IPC for each BlackPearl share. In a release, CEO of BlackPearl John Festival said, “The combined company will have the financial strength to potentially accelerate development of BlackPearl’s exciting growth projects.”
Festival also said that he will be joining the Board of Directors of IPC.
“We also welcome the addition of a high calibre team of BlackPearl management and operational professionals with a long track record of value creation, to complement the existing IPC team,” said IPC CEO Mike Nicholson.
BlackPearl also operates a bitumen property in Blackrod, AB and another heavy oil operation in Mooney, AB that will be acquired by IPC.
The transaction still needs to be approved by shareholders of both companies and certain regulatory approvals but is expected to close December 2018.