Vancouver oil and gas company RockBridge Resources Inc. (TSX-V:RBE) has signed a letter of intent with Calgary’s Crimson Energy Ltd. for a proposed merger.
The merger would build on the partnership RockBridge has with Crimson. The two companies jointly own interests in the Pembina Cardium oil fields of Alberta.
In addition to their other properties, the combined companies will have varying interests in 10 sections of land in the greater Pembina area of west central Alberta.
Including its joint-venture projects with Crimson, RockBridge has 35% to 50% working interests in five sections in the Pembina Cardium field in Alberta. It also has a 1% interest in the producing Woodrush project in B.C.
“We are pleased with the opportunities afforded us by the combination of the two companies,” said Crimson CEO Bernie Goruk.
“[Rockbridge’s] increased focus on light oil plays is a good complement to Crimson’s existing liquid-rich deep-basin gas plays and should be well received by our shareholders.”
Under the proposed merger, all of Crimson’s issued and outstanding shares will be acquired on the basis of 16 common shares of RockBridge, at a deemed price of $0.05 each, for each common share of Crimson.
That’s $0.02 higher than RockBridge’s shares were trading for at close of market Tuesday.
Coinciding with the drafting of a definitive merger agreement, RockBridge plans to raise between $3 million and $5 million through a private placement.
