Three Canadian juniors merge into one

Members of Canada's Armed Forces hold the flag during the singing of the National Anthem before the start of the CFL's 99th Grey Cup football game between the Winnipeg Blue Bombers and the BC Lions in Vancouver, British Columbia November 27, 2011. REUTERS/Todd Korol (CANADA - Tags: SPORT FOOTBALL)

Merger: three companies merge into one

TODD KOROL

Luke Johnson

 20 December 2012 18:04 GMT

Three junior Canadian oil and gas companies have agreed to merge into a single entity focussed on the production of light oil in Alberta.

Pace Oil & Gas, AvenEx Energy and Charger Energy - each based in Calgary and listed in Toronto - will call the merged company Spyglass Resources.

The combined company is expected to produce about 18,000 barrels of oil equivalent per day, with 57.5 million boe in total proved reserves. It will pay a monthly dividend of three Canadian cents with a payout of 35% to 40% of cash flow.

Spyglass will be led by Tom Buchanan, current chief executive of Charger and formerly of Provident Energy Trust.

It plans to spend between…

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