Lime Rock’s Imaginea buys PE-backed West Valley Energy

Imaginea Energy has completed its first disclosed add-on acquisition, picking up West Valley Energy from two U.S. private equity firms.

According to the SDC Platinum database of Thomson Reuters, Imaginea bought the company in December 2014.

Gowling Lafleur Henderson also reported the acquisition on its website, noting it was done by way of an exempt take-over bid with a total consideration of $9.6 million. The law firm said it advised Imaginea on the transaction.

West Valley, a Calgary oil and gas company, was formed in 2012 with an investment from Warburg Pincus and Kayne Anderson Capital Advisors. The deal, the value of which was not disclosed, was intended to support its identification of Alberta oil projects with the potential for value creation through field extension and improved recovery. The company was led by a group of experienced oil and gas executives, including CEO Amar Pandila.

Imaginea is also backed by private equity. Last year the Calgary-based company received a US$300 million equity commitment from Lime Rock Partners. Led by Canadian energy entrepreneur Suzanne West, it is focused on acquiring and developing conventional oil and gas properties in Western Canada. West has said she also wants Imaginea to advance new technologies for promoting more sustainable oilfield development.

West is the former head of Black Shire Energy, which was bought by Twin Butte Energy in 2013. Lime Rock was also an investor in Black Shire, and with the acquisition’s closing took a minority position in Twin Butte.

Imaginea, Lime Rock and Warburg Pincus were not available for comment.

Private equity transactions in Canada’s oil and gas industry accounted for a record-breaking $6.3 billion at the end of 2014. That’s more than triple the $1.8 billion invested in all of 2013.

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