CALGARY — Shares in Halifax-based natural gas producer Corridor Resources Inc. jumped by as much as 50 per cent on Monday after it proposed bringing in a new management team, along with an injection of up to $50 million.
The stock hit a high of $1.32 on the Toronto Stock Exchange, up from its 88-cent close on Friday, after it announced it intended to turn management over to the Calgary-based team that founded Raging River Exploration Inc. and sold it in 2018 to Baytex Energy Corp. in an all-stock deal valued at $2.8 billion.
The same team also built and sold previous companies called Wild Stream Exploration Inc. and Wild River Resources Inc.
If the deal is approved by shareholders, Corridor would be renamed Headwater Exploration Inc., in keeping with the management team’s river name theme.
The transaction is to include the non-brokered placement of shares and warrants to buy future shares worth about $20 million from initial investors and a brokered placement of units to raise another $20 million to $30 million.
The management team’s previous companies have been focused on producing oil and gas mainly in Saskatchewan and Alberta but Corridor’s current natural gas production and reserves are in New Brunswick, Quebec and the Gulf of St. Lawrence.
Former Raging River CEO Neil Roszell said in a news release Corridor’s strategic assets and working capital balance of about $65 million make it an “exceptional” investment opportunity.
“The Headwater management team is energized and truly believes that the Corridor platform can lead us into becoming a leading Canadian energy producer,” he said.
This report by The Canadian Press was first published Jan. 13, 2020.
Companies in this story: (TSX:CDH)
The Canadian Press