PE-backed Osum Oil Sands to buy Orion project for $325 mln
Osum Oil Sands Corp has agreed to buy the Orion Oil Sands Project from Shell Canada Ltd, a division of Royal Dutch Shell PLC, for $325 million. The project, located in Alberta's Cold Lake oil sands region, produces 6,700 barrels per day of bitumen from 22 well pairs. Osum's acquisition, which will be financed by cash, shareholders and US$225 million in senior secured credit facilities from Barclays Bank PLC and Goldman Sachs Lending Partners LLC, is expected to close by July 31. The Calgary-based company was backed with $500 million in private equity investment in 2012. Canada's KERN Partners led the deal, with the participation of Blackstone Capital Partners, Warburg Pincus and other investors.
11 June 2014•4 mins read
