Canbriam Inc. acquired by Royal Golden Eagle’s PO&G; moves forward with rebranding

Recently, Canbriam Inc. went through a rebranding after their acquisition by Pacific Oil and Gas (PO&G). Canbriam Energy Inc. is a private company focused on developing rich liquid natural gas. The company was founded in the year 2007, and is headquartered in Calgary, Alberta. Despite this, the company runs most of their important operations in Altares and the Kobes Montney regions of northeast British Columbia.

Canbriam Energy Inc. also works to “improve the extent of negative externalities faced by the environment through the use of technology, attained through their investments in vapor recovery, waste heat recovery, solar power for electricity, and utilising recycled water”.

PO&G, managed by Royal Golden Eagle (RGE), is an independent energy resource development firm that holds multiple investments throughout the energy supply chain: upstream oil and gas developments, LNG receiving terminals, power plants and gas transmission networks.

The facilities held by PO&G for energy-based operations are spread out to several countries, although they only hold offices in China, Indonesia, and Singapore. PO&G ensures that all their investments carry out operations in a sustainable manner, therefore placing great importance in the process of pre-investing.

Royal Golden Eagle, previously known as Raja Garuda Mas, is a resource-based managing company that aims to develop resources sustainably to improve lives. RGE was founded by Indonesian businessman Sukanto Tanoto, who also serves as the current Chairman.

RGM has up to 60,000 employees, therefore managing multiple companies globally; APRIL and Asia Symbol (paper and pulp), Asian Agri and Apical (palm oil), Bracell (specialty cellulose), Sateri and Asia Pacific Rayon (viscose fibre), and Pacific Oil & Gas (integrated energy provider). Due to recent expansions, Pacific Oil and Gas (PO&G) is of great importance to RGE Groups.

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The Acquisition

On 13th May 2019, the two companies involved made the announcement of the acquisition simultaneously. They confirmed that a contract had been signed, and that PO&G will acquire all of Canbriam Energy Inc.’s shares, both issued and outstanding.

While the transaction took place smoothly with both Boards of Directors in complete agreement, the company had to draw up a support and lock-up agreement for all other officers, directors, and shareholders that make up for more than 90 percent of the outstanding shares.

PO&G was expected to send an exempt takeover bid to the security holders at Canbriam Energy Inc. by 21st May 2019. The announcement ended with clear expectations of closing the acquisition before 1st July 2019.

PO&G successfully acquired Canbriam Energy Inc. on 18th June 2019. This includes both issued and outstanding shares of Canbriam Energy Inc. Upon the completion of the transaction, as intended, Canbriam Energy Inc. issued a conditional exemption notice to those holding on to their senior notes due 2019, so that they may retire it.
The following representatives were a part of the acquisition: Pacific Oil and Gas financial advisor was Macquarie Capital Markets Canada Ltd., and legal counsel was Bennett Jones LLP; for Canbriam Energy Inc., the financial advisor was RBC Capital Markets, and legal counsel was Norton Rose Fulbright Canada LLP.

Missions and visions to be achieved

“We welcome the Canbriam team to Pacific Oil and Gas Ltd.,” said Ratnesh Bedi, President of PO&G. “Our intention is to continue to produce the cleanest natural gas from the Montney region, and to help reduce global GHG emissions by sharing that resource through international export.”

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“We are pleased to close this acquisition and look forward to a seamless integration with Pacific Oil and Gas,” said Canbriam’s President and Chief Executive Officer, Paul Myers. “We expect to continue to responsibly develop our prolific, low-cost Montney resource to support future natural gas export opportunities in Canada.”

Rebranding

Acknowledging their acquisition by PO&G, Canbriam Energy Inc. has decided to go forward with the preplanned rebranding. The company is officially known as Pacific Canbriam Energy Ltd., as of 29th October 2019. The rebrand is meant to position them in the market as a company with new purpose, a result of the new ownership.

New purpose

The newly acquired assets come with new opportunities for the parent company, including enhancing their current ongoing projects. Woodfibre LNG Ltd., a direct subsidiary of PO&G responsible for the Woodfibre LNG project in Canada, has collaborated with Pacific Canbriam Energy Ltd. to improve operations. The project is taking place at a facility about seven kilometres southwest of Squamish, British Columbia, conveniently located near Pacific Canbriam Energy Ltd. The facilities reserved for the Woodfibre LNG project are being used to process and liquefy natural gas (LNG), thereafter exporting it to the Asian markets. An amount of about 2 million tonnes of LNG a year is expected, and the first batch is set to be delivered in 2023. The Woodfibre LNG project is the biggest of its kind in Canada, making it very important to PO&G. This collaboration will help the parent company provide LNG through more responsible means, ensuring their visions to remain sustainable is fulfilled.

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“The Pacific Canbriam Energy name reflects new ownership and a new purpose,” said President of PO&G, Ratnesh Bedi. “Integrated with Woodfibre LNG in British Columbia, Pacific Canbriam will supply responsibly produced natural gas for export to Asian markets. Combined with Pacific Canbriam’s industry-leading water-recycling system and commitment to sustainable natural gas production, the integrated project will support growing markets, combat climate change and improve human health.”

“Asian markets represent a tremendous opportunity for Canadian natural gas,” said Paul Myers. “Pacific Cambrian produces some of the most responsible and sustainable natural gas in the world. Our new name and integration with Woodfibre LNG puts Pacific Canbriam in a position to make a global impact – sharing our resource to support climate change mitigation and build prosperity in growing markets.”

RGE Groups PO&G has vowed to remain environmentally friendly, ensuring the newly acquired Pacific Cambrian Energy Ltd. does so, too. This will surely bring great benefits in Canada’s near future.