Cygnet Energy to Acquire Kiwetinohk Energy Corp in New Agreement

Bassyonni

ago 3 hours

Cygnet Energy Ltd. has announced a new agreement to acquire Kiwetinohk Energy Corp. This acquisition will result in a significant increase in their combined operational scale and resource potential.

Cygnet Energy to Acquire Kiwetinohk Energy Corp

The agreement involves Cygnet Energy purchasing all issued and outstanding common shares of Kiwetinohk Energy for cash consideration of C$24.75 per share. Overall, this amounts to approximately C$1.4 billion, which includes assumed equity and net debt.

Details of the Acquisition

Offer Price: C$24.75 per share
Total Consideration: Approximately C$1.4 billion
Closing Date: Expected in late December 2025
Regulatory Approval: Subject to court and regulatory approvals

This acquisition aims to combine two asset bases, enhancing operational synergies and expanding long-term resource potential. Once finalized, Cygnet will control over 44,000 barrels of oil equivalent per day (boe/d) of production in the Duvernay and Montney formations.

Financial Backing and Support

Funding for this acquisition will primarily come from NGP Energy Capital Management, LLC and the global investment firm Carlyle. ARC Financial Corp., an existing investor in Cygnet and Kiwetinohk, will also roll over part of its shares as part of the agreement.

NGP Energy Capital Management: Key financial backer
Carlyle: New investment partner
ARC Financial: Existing investor supporting the acquisition

Support for this arrangement has been secured from approximately 79% of Kiwetinohk shareholders, including ARC Financial. A special meeting for Kiwetinohk shareholders will be held in December 2025 to vote on the acquisition.

Anticipated Benefits

The merger is expected to solidify Cygnet’s position in the central-Alberta Duvernay and Montney markets. The combined company will benefit from improved resource control and infrastructure management.

David Maddison, President & CEO of Cygnet, expressed optimism about the transaction, highlighting the positive implications for all stakeholders involved, including shareholders and local communities.

Advisory Team

Cygnet’s legal counsel for the acquisition includes Burnet, Duckworth & Palmer LLP, and Norton Rose Fulbright Canada LLP. Financial consultancy has been provided by TPH&Co and BMO Capital Markets, among others, for navigating the involved debt financing.

This acquisition not only enhances Cygnet’s operational footprint but is also a strategic move to drive growth in the evolving energy market.