TORC Oil & Gas Ltd. has entered into an agreement to acquire high quality, light oil assets which are complementary to TORC's existing assets in southeast Saskatchewan. The strategic acquisition includes 4,750 boepd (~98% light oil and liquids) of low decline, high netback, light oil producing assets in southeast Saskatchewan and Manitoba. In addition, the Acquired Assets include ownership of freehold mineral title on more than 80 net sections of land in southeast Saskatchewan. Total consideration for the Acquisition is $430 million, payable in cash.

In conjunction with the Acquisition, TORC's cornerstone investor, the Canadian Pension Plan Investment Board, has committed to invest up to a maximum of $149,985,000 through a private placement of subscription receipts. Additionally, TORC has entered into an agreement for a $250,480,000 bought deal prospectus offering of subscription receipts offered through a syndicate of underwriters as described below, for total gross equity proceeds of $400,465,000.

The Acquisition and Financings further strengthen TORC's business model which is focused on delivering disciplined growth and a sustainable dividend to shareholders.

Tags: TORC Oil & Gas Ltd.