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Velvet Energy

Company Summary

Description

Acquired by Spartan Delta in 2021.

Website

http://www.velvetenergy.net/

Related Entities

Recent news

  • 9/1/2021 - Spartan Delta Discloses... (subscriber access)
  • 9/1/2021 - Spartan Delta Closes on... (subscriber access)
  • 8/19/2021 - Spartan Delta Corp.... (subscriber access)
  • 7/29/2021 - Spartan Delta Issues Pro... (subscriber access)
  • 7/29/2021 - Spartan Delta Acquiring... (subscriber access)

Company Transactions

Date: 8/30/2021
Type: Acquisition

BUYERS:
  • Spartan Delta Corp.
    • SELLERS:
  • Velvet Energy
    • DETAILS:

    COST: 743.3 $MM

    VOLUMES: 20.6 MBOE/d

    ACRES: 281700 Acres

    NOTES:
    Spartan Delta Corp. has signed a deal to acquire private Montney producer Velvet Energy for $743.3 million. They are funding the deal with cash on hand, a $150 million equity financing, a new $150 million term facility and the existing revolving credit facility that is being increased from $100 million to $450 million upon closing. Spartan is also assuming $371 million in debt from Velvet as part of the deal.
    REGIONS:
  • Montney Formation

    • Date: 11/8/2018
    Type: Acquisition

    BUYERS:
  • Velvet Energy
  • Velvet Acquisition Company Ltd.
    • SELLERS:
  • Iron Bridge Resources Inc.
    • DETAILS:

    COST: 120 $MM

    NOTES:
    Velvet Energy announced Iron Bridge shareholders have approved the amalgamation of Iron Bridge and Velvet Acquisition Company ("VAC"). Following the decision, shareholders of 20 million Iron Bridge shares were issued one redeemable preferred share of VAC, automatically redeemed by VAC for $0.845, for each Iron Bridge share held. Total cash consideration amounted to $17 million paid to the former Iron Bridge shareholders.
    REGIONS:
  • Western Canadian Sedimentary Basin