Recently, Pacific Oil and Gas (PO&G), managed by Royal Golden Eagle (RGE), closed the acquisition of Canbriam Energy Inc., by purchasing all their shares. The company, now in transition, will be catering to the growing energy needs of the Asian market.
On 28th June 2019, the companies involved announced that the acquisition had successfully concluded, as PO&G had bought all issued and outstanding shares of Canbriam Energy Inc. The transaction will prove to be greatly beneficial due to Canbriam’s asset base in British Columbia.
“We welcome the Canbriam team to Pacific Oil & Gas Ltd.,” said President of PO&G Ratnesh Bedi. “Our intention is to continue to produce the cleanest natural gas from the Montney region, and to help reduce global GHG emissions by sharing that resource through international export.”
Canbriam’s main asset base is situated in Montney, conveniently located to support PO&G’s natural gas export base. The asset base, producing upto 200 million cubic feet of natural gas and 6,000 barrels of associated natural gas liquids per day, will prove to bring great opportunities in the upcoming future. The asset will be provided with an abundance of capital required to make this happen.
Canbriam Energy Inc. is also involved in developing technology to help minimise any negative environmental impacts caused by their operations. Their investments include vapor recovery, waste heat recovery, solar power for electricity, and utilising recycled water.
The decision to acquire the company was announced on May 13th, 2019. The two parties made the announcement together, after the signing of definitive documents. PO&G had a smooth transition.
The board of directors voted unanimously, effectively approving the transaction, and other officers, directors and significant shareholders, representing upto 90% of the shares, entered a support and lock-up agreement favouring the acquisition.
“Canada has the opportunity to become a leader in the global energy transition,” said Bedi. “Canbriam is one of the lowest cost producers in the Montney, and we look forward to partnering with Paul Myers and the entire team. We welcome the opportunity to work in Canada and produce some of the cleanest natural gas, held to the highest environmental and technical standards in the world, and sharing that resource to offset GHG emissions around the globe.”
Recognising the acquisition, Canbriam Energy Inc. moved forward with the rebranding. The company, now known as Pacific Canbriam Energy, is said to have a transformed sense of purpose—a result of the new ownership. Pacific Canbriam Energy will be seen integrating with the Woodfibre project, run by a direct subsidiary of PO&G.
“Asian markets represent a tremendous opportunity for Canadian natural gas,” said President of Pacific Canbriam Energy Paul Myers. “Pacific Canbriam produces some of the most responsible and sustainable natural gas in the world. Our new name and integration with Woodfibre LNG puts Pacific Canbriam in a position to make a global impact—sharing our resources to support climate change mitigation and build prosperity in growing markets.”
About the Woodfibre LNG project.
The Woodfibre LNG project is a liquified natural gas operation taking place in British Columbia, Canada. The project is carried out by Woodfibre LNG Limited, a direct subsidiary of PO&G. It is valued at $1.6 billion and is expected to produce 2 million tonnes of natural gas per year, with the first delivery to set out in 2023.
About Canbriam Energy Inc.
Canbriam Energy Inc. is a private exploration company focused on finding and developing over-pressured, liquids-rich natural gas resources in the Western Canadian Sedimentary Basin. After the acquisition, the company is now recognised as Pacific Canbriam Energy.
PO&G is an independent energy development company holding investments throughout the energy supply chain. Their main point of focus is to help meet the increasing energy requirements of growing Asian economies.
Royal Golden Eagle, previously known as Raja Garuda Mas, was established in 1973 by Indonesian businessman Sukanto Tanoto. Today, the company has over 60,000 employees, with operations in Indonesia, China, Brazil, Spain, and Canada.
The companies managed by RGE include pulp and paper – APRIL and Asia Symbol; palm oil – Asian Agri and Apical; specialty cellulose – Bracell; viscose fibre – Sateri and Asia Pacific Rayon; and integrated energy provider – Pacific Oil & Gas.