Steps have been taken to complete the acquisition of Questfire’s assets – Manitok Energy Inc.
Back in July 2017, Oil & Gas 360® reported that Manitok Energy Inc. (ticker: MEI) would undergo a strategic combination with Calgary’s Questfire Energy Corp. Manitok previously agreed to acquire all of Questfire’s outstanding shares.
The transaction value was approximately $55.4 million, including an additional $51.8 million used to pay for Questfire’s bank and infrastructure-backed debt, as well as other Questfire obligations.
However, on November 16, 2017, Questfire announced that Questfire’s lenders were seeking a court order to place Questfire in receivership. On November 17, 2017, Manitok Energy issued an update related to the acquisition, cancelling the transaction with Questfire.
Manitok said that the company was aware of this possibility and that steps have been taken to preserve its ability to complete the acquisition of Questfire’s assets. Manitok has two financing alternatives, one involves debt alone and the other involves equity combined with debt, to the later stages of completion. Both financial plans are near the final stages of due diligence and once due diligence is completed successfully, the finalized definitive agreements would take about 10 to 14 days.
Manitok recently acquired Corinthian Oil Corp. in September.
