International Petroleum Company expanding into southwest Alberta
By Medicine Hat News on January 28, 2020.
Suffield block oil and gas producer International Petroleum Company is expanding to southwest Alberta. The Swedish-based global producer is moving to acquire Granite Oil, it announced on Jan. 20, making it the company’s third purchase in the Alberta oilpatch in three years. A release from IPC states adding Granite’s operations in Warner and Cardston counties “will complement IPC’s current southeast Alberta operations.” They would be managed by existing Canadian management team, with Granite’s current operating teams. That company was known as DeeThree Exploration until it was reorganized in 2015. Its current production is 1,500 barrels of oil equivalent per day in an area known as the Alberta Bakken, which is heavily weighted to light oil. IPC’s offer of $0.95 per share is supported by the Granite board and subject to approval by Granite shareholders. The cash consideration of the deal is worth C$37.4 million, while IPC also acquires debt of just under C$40 million, for a total of $79.7 million. Last year the company finalized a deal to take over northern Alberta heavy oil producer Black Pearl Resources. That followed the 2017 purchase of drilling rights and infrastructure on the Suffield block from Cenovus. IPC’s year-end financial report is due on Feb. 11. 7-6
