Canada Energy Partners has acquired all of the outstanding shares of Hudson's Hope Gas Ltd, a wholly-owned subsidiary of GeoMet Inc, for a consideration of two million shares.
GeoMet is the 50 percent owner and operator of Canada Energy Partners’ Peace River Coalbed Methane (CBM) Project. The two million shares of the company issued to GeoMet are subject to a 12-month hold period.
The company believes this is a strategic acquisition because it consolidates operations and 100 percent ownership of the CBM Project into the company, and adds approximately 230 BCF of CBM gas resource potential, bringing the CBM project total up to 500 BCF.
The acquisition also secures 100 percent ownership of the Peace River gas plant and solidifies ownership and control within the company of the only water disposal wells within a 35-mile radius.
The company believes that the acquisition was achieved at an attractive price due to the depressed gas market; and that the consolidation of interests and operations of the CBM Project, the gas plant, and the disposal wells will be strategic in the advancement of both the CBM and Montney plays when gas prices recover.
