Less than a year after buying Junex, Cuda leaves Quebec

Less than a year after seeing the shareholders of the Quebec oil company Junex agree to move into its fold, the Alberta Cuda Oil and Gas already leaves the province.
The Calgary – based company announced Thursday it has signed a series of agreements to divest 100% of its oil and gas assets in Quebec in a $ 10.59 million transaction.

The purchaser, whose name has not been disclosed, will pay a cash consideration of $ 4.29 million payable at closing, on or about August 30, and will be required to assume the “abandonment and restoration” obligations. evaluated at

$ 3.2 million. The latter will also have to assume $ 3.1 million related to the “exercise of dissent rights” forming part of the arrangement agreement between Junex and its acquirer.

Cuda announced the Junex deal in June of last year. The agreement was presented as a consolidation, but in fact, the new entity was led by Cuda’s current management team, since Glenn Dawson was in charge. On Thursday, this geologist by training did not return calls and emails from The Canadian Press. It was not possible to talk to someone at Junex, the Quebec division of Cuda.

“Cuda will continue to focus on the development of its conventional light oil assets with high netbacks and secondary recovery from miscible natural gas injection located in Converse County, Wyoming,” said Dawson in a statement.

In July 2018, during an interview with The Canadian Press, Mr. Dawson said he was willing to be patient in order to be able to obtain an operating lease for the Galt project in Gaspésie, where the oil potential was assessed. to several million barrels.

The company filed a project notice with the Ministry of the Environment and the Fight Against Climate Change last November. Drilling was planned from 2020 to 2025 and operation until 2060. Production does not “require hydraulic fracturing”, the documents sent to Quebec City stated.

According to financial documents filed with the regulatory authorities, Cuda indicated, as of March 31, that it still had no right to proceed, referring to the Canada Petroleum Resources Act, which came into force on March 31. last year, while the Liberal government of Philippe Couillard was in power.

The Cuda shareholders’ meeting, scheduled to be held in Montreal on Thursday, was disrupted by a coalition of environmental protesters, according to a video that was posted on social media.

“The assets of Junex are worthless, since there will be no oil development in Quebec,” said in a statement the spokesman of Environnement Vert Plus, Pascal Bergeron, who was part of the group invited to the annual meeting.

According to data compiled by Thomson Reuters Eikon, the Caisse de depot et placement du Québec held, on December 31, a 2.25% stake in Cuda.

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