MIE (01555) to buy Canadian oil & gas firm at HK$1.2bn

    MIE Holdings (01555) said it agreed to subscribe for and purchase 155 million shares of Long Run Exploration Ltd., 31 million warrants to be issued by Long Run Exploration with an exercise period of 18 months and 31 million warrants with an exercise period of 24 month for a total of C$201.5 million (equivalent to about HK$1.2 billion) payable in cash.
  The target is an intermediate oil and natural gas company headquartered in Calgary, Alberta, Canada with a focus on development, exploration and production in the Western Canadian Sedimentary Basin. It owns a total acreage of more than 2.2 million acres (8,903km2), with about 40% of lands undeveloped. Its core portfolio assets include Peace River, Deep Basin and Edmonton regions. It owns interest in 90 areas with more than 3,000 producing wells.
  Upon completion and consolidation of target as subsidiary of MIE Holdings, the acquisition will significantly enhance the MIE Group's proved and probable reserves (on a barrel of oil equivalent basis) by more than 75% while the production guidance of the Group for the year 2015 will be enhanced by more than three times.