Pine Cliff Energy Ltd. (TSXV:PNE) says it plans to acquire shallow natural gas assets in Alberta and southern Saskatchewan for $100 million in cash.
Pine Cliff says the deal for the assets, which are being acquired from an unnamed “senior oil and gas producer,” is expected to closed by Nov. 1.
The majority of the Alberta assets are east of Medicine Hat with some minor assets in central Alberta near Wetaskiwin. The Saskatchewan assets are near the town of Maple Creek.
In its announcement, issued after markets closed, Pine Cliff said the deal is expected to be financed by a combination of working capital and debt, details of which would be announced later.
On the Toronto Venture Exchange, Pine Cliff shares closed down eight cents, or 5.48 per cent at $1.38 Thursday on volume of almost 2.3 million shares.