Calgary-based oil and gas company Coral Hill Energy Ltd announced that it has received written notice from Aspenleaf Energy Ltd that the latter is terminating its previously announced plans to acquire Coral Hill. The deal, which had been approved by the boards of directors of both companies, would have given Coral Hill shareholders the option of a cash payment or shares in Aspenleaf. Coral Hill said it “does not believe Aspenleaf has valid grounds for the termination” and intends to pursue “all remedies available to it.” Calgary’s Aspenleaf is backed by Canadian private equity firm ARC Financial Corp, Ontario Teachers’ Pension Plan and other investors.
Coral Hill Announces Receipt of Notice of Termination of Aspenleaf Arrangement
CALGARY, ALBERTA–(Marketwired – Jan. 28, 2015) – Coral Hill Energy Ltd. (“Coral Hill”) announces that subsequent to the approval of the Court of Queen’s Bench of Alberta yesterday for the final order approving the arrangement and the receipt of other items in satisfaction of the conditions precedent to closing of the arrangement, including, among other things, the approval of 99.91% of the Coral Hill securityholders in favor of the arrangement, the consent of Coral Hill’s lenders for the change of control of Coral Hill and the approval of the arrangement under the Competition Act (Canada), Aspenleaf Energy Limited (“Aspenleaf”) has provided written notice to Coral Hill that it is terminating the arrangement agreement between Coral Hill and Aspenleaf and, as such, will not be proceeding to close the arrangement. Coral Hill does not believe Aspenleaf has valid grounds for the termination of the arrangement agreement between the parties and Coral Hill intends to pursue all remedies available to it.
Coral Hill is a private Alberta based corporation actively engaged in the exploration, development and production of crude oil and natural gas in Alberta.
CORAL HILL ENERGY LTD.
DONALD J. RAE
PRESIDENT AND CEO
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