Sign In / Up

Add contribution as a guest

Your email will not be displayed publicly
Benefit of signing in/signing up to personalize comment

Comment as a guest

Your email will not be displayed publicly
Benefit of signing in/signing up to personalize comment

Login

Not a member Register   Forgot Password
or connect using
 

Email

 

Rudaw

Business

Crest Energy buys out WesternZagros for $225 million (CAD)

By Rudaw 13/5/2017
An oil facility in the Kurdistan Region. File photo: Rudaw
An oil facility in the Kurdistan Region. File photo: Rudaw

ERBIL,  Kurdistan Region — WesternZagros with oil operations in the Kurdistan Region announced it has agreed to sell all its common shares to Crest Energy International for $225 million (CAD) in the face of "immediate financing requirements."


"Crest AcquireCo will provide the Company with the funds necessary in order for the Corporation to acquire all of the outstanding common shares,"  WesternZagros Resources Limited announced in a statement on Friday.

"[It will] result in Crest AcquireCo owning 100 percent of the Company. The transaction is to be completed by way of a plan of arrangement under the Business Corporations Act (Alberta)," it added.

WesternZagros is an international natural resources company. Its shares trade in Canada.

"WesternZagros, through its wholly-owned subsidiaries, holds a 40 percent working interest in two Production Sharing Contracts with the Kurdistan Regional Government in the Kurdistan Region of Iraq," read the statement.

Crest Energy is an affiliate of Crest Investment Company based out of Houston, Texas.

Zagros cited a lack of market investment and low prices in energy commodities.

"We are pleased to present this transaction to our shareholders," said Simon Hatfield, CEO of WesternZagros. "We have been engaged in an extensive search for financing and strategic alternatives for 18 months, hampered by the challenging capital markets for oil and gas investments given the low commodity price environment. 

"We are delighted to conclude this search with the receipt of a proposal that provides a strong premium to the current share price and a fair valuation given the future risks of developing our assets over the next several years."

Crest will also advance a $30 million (USD) short-term loan "to address the company's immediate financing requirements."

Zagros had operations in the Taq Taq oil field 85 kilometers southeast of Erbil.

Comments

 
| 13/5/2017
all fail to mention that crest Energy is already an owner of WZ and that it seems to this reader that to try to attempt to go around paying certain parties locally the 200 million that has been due for a while but delayed by the ongoing case of Monde Petroleum v Westernzagros, the best way to go around is to go private and be unanswerable to any public shareholders and or scrutiny by any any listing authority. In any event, the board and management of WZ seem to or may have defrauded the shareholders when not long ago there were offerings of more than $1 per share that was declined by the same management. Welcome to the Corrupt and dubious non-transparent dealings of KRG and Oil companies. could this be the price Talabani's sold out Gorran for? possibly another 200 mill to another political family and no one is held accountable
Dler | 15/5/2017
Oil dependency is failed

Be Part of Your Rudaw!

Share your stories, photos and videos with Rudaw, and quite possibly the world.

What You Say

altani | 7/23/2017 4:46:13 PM
I don't care what happens in Syria, Iraq or Iran. However I do care what happens in Turkey. Turkey will never, ever be divided. I rather would have a...
Kobane-senah | 7/24/2017 4:11:39 AM
@Gerbert d'Aurillac Im kurdish american and love america however warn you put too much trust in amis politicians. Lets keep in mind our worst enemy...
KRG independence wouldn’t stir up separatism in other Kurdistans
| yesterday at 09:39 | (6)
FAUthman | 7/24/2017 2:19:58 AM
These guys need to lose some weight around their middle. With a pot belly like that as defense minister for Iraq and the other guy who is a spokesman...
Kobane | 7/24/2017 4:03:14 AM
Its disgusting all these bullshit of unity while no one asked kurdish people what they want. These full should know being poppets of big powers to...
Peshmerga to Iraqi defense chief: We defend ourselves in face of any possible threats
| 18 hours ago | (8)
FAUthman | 7/23/2017 12:44:31 PM
Looks like Putin is using Maliki to get the Americans out of Iraq when ISIS is defeated and to bolster Maliki to defeat Abadi in the forthcoming...
Jagerxin derashy | 7/24/2017 4:02:09 AM
If anyone is responsible for rise of Isis and fall of Mosul is you nori almaliki you treated sunnis like dirt and abused them!! you sad bastard if it...
Iraqi VP Maliki on official visit to Moscow, scheduled to meet President Putin
| yesterday at 02:00 | (2)
Bilal | 7/23/2017 11:02:00 PM
Shia Iran should just rename Iraq as a province of Iran its a vassel state of Iran at best not a nation partition is the only way forward.
History | 7/24/2017 1:26:23 AM
As much as I like Kurds to be independent country .. Turkey, Iran, Iraq and Syria will never allow it. Obviously to have freedom and respect the...
Kurdistan cannot secede from Iraq, predicts former PM Maliki
| 21/7/2017 | (13)

Elsewhere on Rudaw

Journalists from Turkish daily face trial today 3 hours ago |

Journalists from Turkish daily face trial today

The 17 include reporters and administrators more
Army stays out of referendum dispute: Iraq defense chief 5 hours ago |

Army stays out of referendum dispute: Iraq defense chief

Iraq Defense minister: As for the referendum, the more
German girl who joined ISIS wants to leave Iraq, return to family 6 hours ago |

German girl who joined ISIS wants to leave Iraq, return to family

"I just want to go home to my family more
0.594 seconds