The acquisition also includes the assumption of nearly $7.5m of positive working capital after accounting for estimated transaction costs.
Waseca is a heavy oil producer with a focused asset base in the greater Lloydminster area of Canada. It is 81.1% owned by Sprott Resource Corp.
After the closing of the acquisition, Sprott Resource is anticipated to own about 9% of the outstanding Twin Butte common shares.
At closing, Canadian oil producer Twin Butte is expected to have nearly 245.9 to 256.1 million shares outstanding.
Twin Butte believes that the Waseca and Avalon acquisitions have created accretive growth for the company allowing it to increase its return to shareholders.
RBC Capital Markets is acting as financial advisor to Waseca Energy for this transaction, while Peters & Co. is acting as financial advisor and Raymond James and National Bank Financial are acting as strategic advisor to Twin Butte.
