Annapolis Capital Limited announces the combination of Tyrannex Energy Ltd. and Tempus Energy Ltd. to create well-capitalized Alberta light oil producer Amicus Petroleum Inc.
CALGARY, AB, Oct. 14, 2020 /CNW/ - Annapolis Capital Limited ("Annapolis") is pleased to announce the merger (the "Merger") of two of its portfolio companies, Tyrannex Energy Ltd. ("Tyrannex") and Tempus Energy Ltd. ("Tempus"), to form Amicus Petroleum Inc. ("Amicus" or the "Company"). The Merger creates an Alberta-focused, high netback, light oil producer with current production capability of approximately 1,350 boe/d (75% oil and NGLs) and a pristine balance sheet. The Company's blend of longer life, low decline assets and high impact, quick payout drilling opportunities position it well to both weather the current low oil pricing environment and return to growth when oil prices strengthen. In addition, with cash on hand (no debt) and a call on additional capital from Annapolis, Amicus is uniquely positioned to pursue further consolidation activity in the current distressed market environment.
Amicus is led by management and technical personnel with a track record of success in developing and exploiting conventional and unconventional oil opportunities across the Western Canadian Sedimentary Basin. The Company's leadership team includes executives from both Tyrannex and Tempus, with Daniel Gundersen serving as President and CEO and Wayne Laturnas serving as Senior Vice President. Mark Poelzer, Managing Partner of Annapolis, who served as Chairman of the board of directors of both Tyrannex and Tempus prior to the Merger, will serve as the Company's Executive Chairman.
Peter Williams, Annapolis' Managing Partner and CEO, commented, "At Annapolis, we are excited to be partnered with Amicus' talented group of individuals working from this strong platform. While both Tyrannex and Tempus had been prudently developing their asset bases, the recent downturn highlighted the benefits to be achieved by combining the two entities. Most importantly, by achieving greater scale, cost savings, and allowing the Company to optimally allocate capital across a broader suite of assets, the Merger will improve the financial strength and resiliency of Amicus in a weak commodity price environment and enhance its ability to deliver sustainable free cash flow as oil prices improve."
Daniel Gundersen, President and CEO of Amicus, added, "With the low decline nature of the Doe Creek waterflood asset in Valhalla providing a solid base cash flow stream, Amicus has the ability to withstand this lower pricing environment where capital spending will be muted. In a recovering oil price environment, that base cash flow and a call on additional equity from Annapolis will fund the development of underexploited portions of that asset and further drilling on our Mannville assets in southern Alberta, on which encouraging results have been achieved to date."
The Merger closed on September 30, 2020.
ABOUT AMICUS
Amicus is a Calgary, Alberta based company engaged in oil and gas exploration and development. Formed in 2020 through the merger of Tyrannex Energy Ltd. and Tempus Energy Ltd., Amicus is led by Daniel Gundersen (President and CEO), Wayne Laturnas (Senior Vice President) and Mark Poelzer (Executive Chairman).
SOURCE Annapolis Capital Limited
