TORONTO, Nov. 15 /CNW/ - Direct Energy, one of North America's largest
energy and energy-related services providers, announced that it has entered
into an agreement to offer to acquire all of the issued and outstanding common
shares of Rockyview Energy Inc. (TSX:RVE) for cash consideration of C$3.16 per
share, a 29 per cent premium over the 20-day weighted average closing price on
the TSX ending November 14, 2007; for a total consideration of C$113.3 million
((pnds stlg)56.9 million) including the assumption of debt.
Rockyview Energy is an oil and gas company with conventional oil and gas
and coal-bed methane operations in central Alberta, western Alberta and the
Peace River Arch. In addition to a production base of 2,700 boe per day (of
which 97% is natural gas), Rockyview has a 100,000 acre undeveloped land
portfolio with numerous identified drilling locations.
"Rockyview Energy is an excellent strategic and operational fit with
Direct Energy's Canadian assets and is in line with our strategy of increasing
our level of gas reserves to supply our Canadian and north-eastern United
States retail customers and becoming an increasingly integrated energy
business," said Deryk King, Chairman and Chief Executive Officer of Direct
Energy. "The acquisition of Rockyview Energy will add net proven and probable
gas reserves of 43.2 Bcfe and increase the natural gas production level of our
Alberta operations to in excess of 100 mmcfe/day."
Direct Energy owns and operates approximately 3,000 natural gas wells in
Alberta, three gas-fired electrical power plants in Texas, is a leading
retailer of green power in Canada and has renewable power purchase agreements
totalling 813MW in Texas.
The transaction is subject to shareholder and regulatory approval and is
expected to close in January 2008. CIBC World Markets Inc. acted as exclusive
financial advisor to Direct Energy with respect to the acquisition.
About Direct Energy
Direct Energy is one of North America's largest energy and energy-related
services providers with over 5 million residential and commercial customer
relationships. Direct Energy provides customers with choice and support in
managing their energy costs through a portfolio of innovative products and
services. A subsidiary of Centrica plc (LSE: CNA), one of the world's leading
integrated energy companies, Direct Energy operates in Texas, the
north-eastern United States and across Canada. To learn more about Direct
Energy, visit www.directenergy.com.
For further information:
For further information: Aishling Cullen, Direct Energy, (416) 590-3779,
firstname.lastname@example.org; Lisa Frizzell, Direct Energy, (403)