Montney seller, heavy-oil spin
Logan Energy Corp. (TSXV: LGN) said October 26 it entered a definitive arrangement agreement with Ovintiv Inc. (TSX, NYSE: OVV) and Ovintiv Canada ULC to sell all issued Logan shares for $1.40 in cash per share. Logan said the cash leg values the company at approximately $1.26 billion, including the assumption of Logan's net debt, with about 691.6 million Logan shares outstanding.
Before Ovintiv Canada acquires the Logan shares, Logan said it will spin out Logan Oil Corp. to Logan shareholders. Logan Oil is slated to hold northwest Alberta undeveloped lands, the Sawn Lake SAGD project through an Andora acquisition expected October 30, and Woodcote Inc. assets under a pre-acquisition agreement also dated October 26. Logan said shareholders would receive Logan Oil shares and transaction warrants in addition to the cash, for total consideration of about $1.48 per Logan share based on the stated Logan Oil financing price.
The company said the transaction would be implemented by a plan of arrangement under the Business Corporations Act (Alberta), with a shareholder meeting targeted around January 4, 2027 and closing expected early in the first quarter of 2027, subject to court, Competition Act, and other customary conditions. Ovintiv is on the listed book at All For Energy.
This is an announced arrangement agreement and spin structure. It is not a completed acquisition, not Ovintiv fourth-quarter production guidance, and not a TSXV listing approval for Logan Oil until regulators sign off.