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Home Clean Fuel Pieridae, Pétrolia to create first Canadian integrated LNG company

Pieridae, Pétrolia to create first Canadian integrated LNG company

May 16, 2017

Canadian LNG project developer Pieridae Energy has agreed to acquire Pétrolia in a reverse takeover, creating a new publicly traded company Pieridae Energy Limited, to be known as Amalco.

This arrangement will enable Amalco to strategically position itself in the North American equity markets as a developing fully integrated energy company, from upstream production to the sale of LNG, the statement reads, adding, the Goldboro LNG project would be “Canada’s only integrated LNG facility.”

The boards of directors of each of Pieridae and Pétrolia have unanimously approved the arrangement and determined that it is in the best interests of their respective shareholders.

Under the arrangement, Pieridae Energy will pay CA$0.38 for each Pétrolia share. Following the transaction, Pétrolia shareholders will own 14.75 percent of the joint company and the Pieridae shareholders will own 85.25 percent of Amalco.

The closing of the transaction is scheduled for July this year.

Under the arrangement, Pieridae has also agreed to complete a private placement of Pieridae Subscription Receipts at a price of $12.50 per unit, targeting proceeds of CA$50 million.

The net proceeds from the private placement would be used to fund certain activities to allow Amalco to reach the final investment decision with respect to the Goldboro LNG project, Amalco’s operations and general working capital purposes.

Pieridae Energy is currently developing a 10 mtpa Goldboro LNG project at the Atlantic Ocean coast, approximately two kilometers from the communities of Goldboro in the west, and Drum Head in the east in Goldboro, Nova Scotia.

The Goldboro LNG project is situated on the same site as the LNG regasification component of the formerly assessed Keltic Petrochemicals and LNG facility project.

The company targets first LNG production the next wave of LNG production, post-2020 and has already sold 50 percent of Goldboro’s initial capacity under a 20-year, take-or-pay contract with Uniper.