Rubellite Energy Shares Rise on C$34M Asset Acquisition in Alberta

By Adriano Marchese

Rubellite Energy shares were higher Friday morning after the company said it has acquired additional oil assets and undeveloped land in Alberta for 34 million Canadian dollars ($24.8 million).
At 9:56 a.m. ET, shares were trading 5.8% higher at C$2.55.

The Canadian energy company said late Thursday that it has entered into a definitive purchase and sale agreement to acquire additional Clearwater assets within the Figure Lake and Edwand areas as well as undeveloped land in the Nixon area of northeast Alberta.
The acquisition comes with about 800 barrels a day of conventional heavy oil says production, it said, as well as 215 net sections on the Southern Clearwater play trend.
The acquisition is expected to add value to the business through various operation and capital synergies and increase base production by about 20%.
Concurrently, the company has temporarily increased its credit facility by C$20 million with a lender to C$60 million. The credit facility will reduce by C$5 million at the end of each quarter next year back down to C$40 million by year’s end.
Write to Adriano Marchese at [email protected]