Canada’s Blackbird, Pipestone to merge in $310 million deal

Canadian oil and gas exploration and development company Blackbird Energy Inc. and peer Pipestone Oil Corp. announced that they have entered into an agreement that provides for the combination of Blackbird and Pipestone Oil.

Concurrent with the transaction, Blackbird and Pipestone Oil have entered into agreements with certain of their existing shareholders who have committed to common equity financings totalling $111 million and Pipestone Oil has arranged $198.5 million of debt financing.

The transaction and financings will result in the strategic combination of two adjacent and contiguous Pipestone Montney land bases under a single well-capitalized, high growth company that will operate under the name Pipestone Energy Corp.

Upon completion of the arrangement and financings, Blackbird shareholders would own approximately 45.1 percent of the new shares to be outstanding or approximately 50.8 percent on a fully diluted basis including all existing Blackbird dilutive securities.