December 04, 2024 12:42 ET| Source: Parallax Energy, L.P.
CALGARY, Alberta, Dec. 04, 2024 (GLOBE NEWSWIRE) — Parallax Energy Operating Inc., a wholly owned subsidiary of Parallax Energy, L.P. (collectively “Parallax”), today closed the acquisition of Vesta Energy Ltd. (the “Acquisition”), a private producer with a significant land position in the East Shale Basin of the Duvernay light oil window in Central Alberta.
Parallax now operates an established production base of over 17,000 boe/d (~75% light oil) and is well-positioned for long-term organic growth, with decades of future development inventory across approximately 230,000 net acres in the Duvernay.
“We are excited to close the acquisition of Vesta. We now control among the largest inventories of low-breakeven Duvernay oil locations, with recent completion advancements underpinning some of the highest returns in the WCSB,” said Dustin Hoffman, Parallax’s Chief Executive Officer. “With a fully capitalized and growth driven mindset, we look to pair an accelerated organic development program with a runway of strategic consolidation opportunities”.
Parallax funded the acquisition utilizing its equity commitment from funds managed by Carnelian Energy Capital Management, L.P. (“Carnelian”) and borrowings from a new reserves-based credit facility.
National Bank Financial Inc. and ATB Capital Markets acted as Financial Advisors to Parallax with respect to the Acquisition. National Bank Financial Markets acted as Agent, Co-Lead Arranger and Joint Bookrunner; Bank of Montreal and Royal Bank of Canada acted as Co-Lead Arrangers and Joint Bookrunners; and ATB Financial acted as Co-Lead Arranger with respect to the credit facility.
Stikeman Elliot LLP and Vinson & Elkins LLP are acting as legal counsel to Parallax in respect of the Acquisition, with Gowling WLG (Canada) LLP acting as legal counsel to Parallax in respect of its credit financing.
About Parallax Energy, L.P.
Parallax Energy is an upstream company focused on acquisition and development opportunities in Canada. For more information, please visit www.parallaxenergy.ca.
About Carnelian Energy Capital Management, L.P.
Carnelian Energy Capital is a North American-focused investment firm with an established track record of value creation across the energy sector. With $4.0 billion of cumulative capital commitments, Carnelian is dedicated to bringing its strategic expertise and nimble approach to partnerships with leading businesses and best-in-class management teams. For more information, please contact Carnelian at [email protected] or visit www.carnelianenergy.com.