Federated Co-Operatives Limited : FCL purchases Triwest Exploration Inc. for $138.4M
06/27/2012| 04:32pm US/Eastern
Federated Co-operatives Limited (FCL) announced today that it
has acquired all of the issued and outstanding shares of
Triwest Exploration Inc. (Triwest) of Calgary. Total
consideration paid for the acquisition was $138.4 million.
"FCL is excited about the value that the purchase of Triwest
adds to the Co-operative Retailing System," says FCL's CEO
Scott Banda. "FCL has a long history in the energy business,
including crude oil, which continues to serve our
members' needs and enhances the communities in which they
live. FCL's acquisition of Triwest along with the continued
expansion of present operations is a tangible sign that Co-op
is growing and moving forward with our growth strategy."
The Triwest purchase significantly increases FCL's presence
in southeast Saskatchewan in an area called the Mississippian
oil development fairway. The newly acquired land base totals
32,000 net acres and includes both developed and undeveloped
acreage. The land and properties have very strong access to
crude oil infrastructure including disposal wells and crude
oil treatment facilities.
FCL's plan for the development of these new assets will be
overseen by Adonai Resources Corporation of Regina. Adonai is
already providing expertise to FCL in the exploration,
development and operation of its crude oil assets under the
terms of an existing management agreement.