Cygnet Energy Seals Deal to Acquire Kiwetinohk Energy Corp Boosting Industry Influence

Cygnet Energy Ltd. has entered into a decisive agreement to acquire Kiwetinohk Energy Corp, significantly enhancing its influence in the energy sector. This acquisition is valued at approximately C$1.4 billion, with Cygnet offering C$24.75 per share for KEC shares.

Details of the Acquisition

The strategic deal is designed to merge two asset bases, increasing operational synergies and resource potential. The acquisition is planned under the Canada Business Corporations Act and is expected to finalize in late December 2025.

Funding Arrangements

The acquisition will be funded mainly through contributions from NGP Energy Capital Management and Carlyle. Additionally, ARC Financial, an existing Cygnet investor, will roll over some of its KEC shares into Cygnet common shares as part of the deal.

Support from KEC Shareholders

• Majority support has been garnered from KEC shareholders, including ARC Financial.
• These shareholders represent approximately 79% of the outstanding KEC shares.
• A special meeting of KEC shareholders will occur in December 2025 to facilitate the approval process.

Strategic Benefits of the Acquisition

Once finalized, Cygnet will oversee over 44,000 barrels of oil equivalent per day (boe/d) from its enhanced Duvernay and Montney assets. This includes significant control over infrastructure and a substantial inventory for future drilling activities.

Leadership Perspectives

David Maddison, President & CEO of Cygnet, expressed confidence in the acquisition, noting its potential to create a more resilient platform for growth. He acknowledged the strong performance of KEC and the expected benefits for all stakeholders involved.

Advisors and Financial Backing

Cygnet’s legal counsel for this transaction includes Burnet, Duckworth & Palmer LLP, while Norton Rose Fulbright Canada LLP will assist with financing aspects. Financial advisory has been provided by TPH&Co. and BMO Capital Markets.

About Cygnet Energy

Cygnet Energy is focused on developing profitable upstream business activities in Western Canada. The acquisition of Kewitinohk Energy Corp positions Cygnet further as a leading operator in the region’s energy landscape.

This move not only boosts Cygnet’s market presence but also sets the stage for future growth amidst evolving energy demands.