Baytex Energy Says Aurora Shareholders Approve Deal; Names New Chairman, COO

(RTTNews) - Canada's Baytex Energy Corp. (BTE.TO, BTE) Wednesday announced that the shareholders of Australia's Aurora Oil & Gas Limited (AEF.TO, AAGLF.PK), at today's scheme meeting, approved the agreement for Aurora to be acquired by Baytex

Baytex, through its subsidiary Baytex Energy Australia Pty Ltd, will buy Aurora shares for A$4.20 per share in cash. The total purchase price is estimated at C$2.8 billion, including the assumption of approximately C$0.9 billion of indebtedness.

The company noted that 88% of Aurora shareholders voted in favor of the arrangement, which is expected to be closing in the first half of June.

Aurora will now apply to the Federal Court of Australia for orders approving the Arrangement at a hearing scheduled for May 26. Once it is approved, the company expects to lodge the Court orders approving the Arrangement with the Australian Securities Investment Commission on Tuesday, May 27.

Following this, trading in Aurora shares would cease at the close of trade on May 27 in Australia and at the open of trade on May 27 in Toronto.

Baytex said the acquisition is accretive to its funds from operations while maintaining a strong balance sheet. With the deal, Baytex would get premier acreage in the core of the liquids-rich Eagle Ford. Aurora's primary asset consists of 22,200 net contiguous acres in the prolific Sugarkane Field located in South Texas. Aurora's first quarter 2014 gross production was 28,671 boe/d of predominantly light, high-quality crude oil.

Further, Baytex said it has appointed Raymond Chan as non-executive Chairman of the Board of Directors. The company also promoted Richard Ramsay to the position of Chief Operating Officer, succeeding Marty Proctor, who is leaving to pursue other opportunities.

Ramsay joined Baytex as Vice President, Heavy Oil in January 2010, and was appointed Vice President, Alberta / B.C. Business Unit in January 2012.

The company also promoted Ryan Johnson to the position of Vice President, Alberta / B.C. Business Unit.

In addition, Baytex announced that Michael Verm, Aurora's current Chief Operating Officer, will join Baytex contingent on the closing of the acquisition of Aurora, as Vice President and Managing Director of our Eagle Ford operations.

Further, Geoffrey Darcy has been promoted to the position of Senior Vice President, Marketing and Brian Ector has been promoted to the position of Senior Vice President, Capital Markets and Public Affairs.

In Australia, Aurora shares are gaining A$0.01 or 0.12 percent, and trading at A$4.18. +0.01 (0.12%)