Distinction Energy Corp. and Kiwetinohk Resources Corp. agreed to acquire Certain multi zone, oil and liquids rich natural gas producing assets in Simonette area of northwest Alberta, including associated infrastructure and additional assets in the Willesden Green and Ferrier areas of Alberta from Ovintiv Canada ULC for approximately CAD 340 million.

Distinction Energy Corp. and Kiwetinohk Resources Corp. agreed to acquire Certain multi zone, oil and liquids rich natural gas producing assets in Simonette area of northwest Alberta, including associated infrastructure and additional assets in the Willesden Green and Ferrier areas of Alberta from Ovintiv Canada ULC for approximately CAD 340 million on February 17, 2021.

The consideration price includes CAD 15 million in contingency payments based on the future commodity prices. Distinction Energy will participate to acquire 50% stake. Distinction Energy and Kiwetinohk Resources agreed through an Acquisition Opportunity Agreement that the Acquisition and the purchase price (subject to adjustments) will be split equally.

Distinction's portion of the acquisition will be financed with cash on hand and a CAD 127.5 million credit facility with ATB Capital Markets, National Bank of Canada and Bank of Montreal. The Acquisition is anticipated to close in the second quarter and is subject to applicable regulatory approvals and other customary conditions. As of April 27, 2021 The Simonette Acquisition is anticipated to close at the end of April 2021.

ATB Capital Markets has acted as financial advisor to Distinction.